COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, February 21, 2007, 10:25 a.m. - - - Bill 070002 - Held at request of sponsor. Bill 070003 - Re zoning designations of area bounded by Aramingo, railroad right-of-way, Del. Expressway, Luzerne, Almond, Wheatsheaf. Bills 070006, 08, 09, 10, 11, - Gaming- related legislation. 12 (Full text of all bills attached hereto.) COUNCILMEMBERS PRESENT: Anna C. Verna, Chair Blondell Reynolds-Brown Darrell L. Clarke William K. Greenlee Frank DiCicco Jack Kelly James F. Kenney Donna Reed-Miller Brian J. O'Neill Daniel J. Savage - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 INDEX - 2/21/07 RULES COMMITTEE WITNESS Bill 070003 William Kramer, Planning Commission..... Bills 070006, 070008 through 07013 Romulo Diaz, Jr., City Solicitor........ Thomas Chapman, City Planning........... 45 Steve Szapor, Innovation Group President 77 SugarHouse Casino Representatives Bob Sheldon, President.................. 96 Greg Carlin, CEO........................ 110 Melanie Shaw, Community Relations....... 116 Dan Keating, Keating Building Corp...... 122 Foxwoods Casino, Philadelphia Entertainment Developer Partners, LP Jeffrey B. Rottwitt..................... 139 William G. Schwartz..................... 139 Panel #1 Anne Dicker, Casino-Free Philadelphia... 184 Daniel Hunter, " " " ... 201 Caryn Hunt, " " " ... 206 Jeff Benedict, Author................... 185 President, Connecticut Alliance Against Casino Gambling Panel #2 Joe Mahoney, Phil. Chamber of Commerce.. 224 Delilah Winder, African-American........ 251 Chamber of Commerce Pat Coulter, Urban League of Phila...... 256 3 INDEX - 2/21/07 RULES COMMITTEE WITNESS Panel #3 J. Paylor, Longshoremen's Assoc......... 260 Renee Goodwin, Pennsport Civic Assoc.... 280 Mary Reinhart, " Resident....... 289 Panel #4 Ryan Boyer, Secretary-Treasurer......... 295 Local 332 (speaking in place of Sam Staten) Panel #5 Jeff Rush, QVNA President............... 299 Kathy Dilonardo, QV Resident............ 304 Richard Wolk, QVNA Board................ 310 Panel #6 Richard Levins, Fishtown Resident....... 314 Philip Bogaten, Neighbor/Land Owner..... 322 Eric Rudy, Fishtown Athletic League..... 323 Panel #7 A.J. Thompson, Fishtown Resident........ 327 Matt Pappajohn, Fishtown Resident....... 338 Joe McNulty, New Kensington CDC......... 344 Matt Ruben, No. Libs. Neighbors Assoc. 352 Panel #8 Bill Walsh, Gr. Phila. Hotel Assoc. .... 373 Wanda Paul, Convention & Visitors Bureau 379 Jack Ferguson, " " " " 381 Ahmeenah Young, Penn. Convention Center 398 D. Diamond, Gr. Phil. Tourism Marketing 404 Panel #9 S. Haney, Southwark Historic District... 410 G. Piccirilli, Bella Vista Civic Assoc. 420 J. Schiavo, Old City Civic Assoc. ...... 429 4 INDEX (cont'd ) - 2/21/07 RULES COMMITTEE WITNESS Panel #10 Chris Meck, Passyunk Square Civic Assoc. 437 Tanya Rorke, " " " " 440 (testimony read by unidentified person) Paul Boni, Society Hill Civic Assoc. ... 445 Susan Patrone, Passyunk Sq. Civic Assoc. 454 Panel #11 Ken Gregory, Queen Village resident..... 461 Reverend Dick Ulman, Private Citizen.... 463 Marc Stier, Neighborhood Networks....... 466 Panel #12 Vern Anastasio, Bella Vista United...... 471 Henry Lewandowski, Whitman Comm. Council 477 State Representative Dennis M. O'Brien 487 5 2/21/02 RULES - BILL 070002
Good morning, everyone. I would ask everyone who is standing to please take a seat, we do have the balcony open for any overflow. Thank you. This is a public hearing of the Committee on Rules. I would ask Mr. McPherson to please read Bill No. 10 070002. MR. McPHERSON: Bill No. 12 070002, an ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Orthodox Street, Garden Street, Lefevre Street, Richmond Street, Buckius Street, and the Delaware River.
Thank you very much. At the request of the sponsor, this bill is being held. Mr. McPherson will please read Bill No. 070003. MR. McPHERSON: Bill No. 25 070003, an ordinance to amend the 6 2/21/07 RULES COMMITTEE BILL 070003 Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Aramingo Avenue, a railroad right-of-way, Delaware Expressway, Luzerne Street, Almond Street, and Wheatsheaf Lane. (Witness comes forward.)
Good morning. Please identify yourself for the record and proceed with your testimony.
Good morning, Madam President and members of the Rules Committee. My name is William Kramer. I am the Senior Zoning Planner in the Development Planning Division of the Philadelphia City Planning Commission. I am here today to testify on Bill No. 21 070003, which was introduced by Councilmember Krajewski on January 23, 2007. Bill No. 070003 rezones a parcel of land bounded by Aramingo 7 2/21/07 RULES COMMITTEE BILL 070003 Avenue, a railroad right-of-way, the Delaware Expressway, Luzerne Street, Almond Street, and Wheatsheaf Lane from a zoning designation of G-2, General Industrial, to a zoning designation of ASC, area shopping center. The purpose of this zoning change is to allow for commercial development on this site. This site has been a part of the Tioga Pipe Company for many years, and Tioga Pipe has re located outside of the City and is trying to obtain development for its former operations site. The proposed change is consistent with the existing pattern of land use on Aramingo Avenue, and therefore, this site is not considered as a continued viable industrial site. Accordingly, the Planning Commission, at its meeting on February 20, 2007, recommended that Bill 070003 be approved. I would be happy to answer any 8 2/21/07 RULES COMMITTEE BILL 070003 questions of the committee. Thank you.
Thank you. Is there presently a shopping center being proposed for this site? And if so, who is the proposed development?
No, ma'am, there is no proposal for development at this site at this time. It is a request from the Tioga Pipe Company to change the zoning classification to allow for easier sale of the property. Excuse me.
Thank you. Are there any questions from members of the committee? (No questions.)
Do we have anyone else to testify on this bill? (No response.)
Seeing none, thank you. 9 2/21/07 RULES - PUBLIC MEETING (070003)
I would suggest that before we hear the other bills on the scheduled list that we go into a public meeting regarding Bill No. 070003. And the Chair recognizes Clarke.
Thank you, Madam President. Madam President, I move that Bill No. 070003 be reported out of committee with a favorable recommendation and a request for a rules suspension as to allow a reading at the next session of Council. (Motion seconded.)
It has been moved and properly seconded that Bill No. 070003 be reported out of committee with a favorable recommendation, and further that the rules of Council be suspended so as to permit first reading at our next Council 10 2/21/07 RULES - PUBLIC MEETING (070003) session. All in favor will say aye. Those opposed? The ayes have it and the motion carries. * * * 11 2/21/07 RULES - Bills 070006, 08 through 13
We will now again go into our public meeting regarding the gaming bills, and I would ask Mr. McPherson to please read the following bills: 070006, 070008, 070009, 070010, 070011, 070012, and 070013. Bill No. 070006, an ordinance 10 amending Section 14-1605 of the Philadelphia Code entitled "Regulated Uses," by adding "Licensed Gaming Facilities" as a regulated use, all under certain terms and conditions. Bill No. 070008, an ordinance 16 amending Chapter 14-400 of the Philadelphia Code entitled "Commercial Entertainment District," by deleting the provision authorizing the City Planning Commission to approve temporary facilities; by removing licensed gaming facilities and offtrack betting facilities as permitted uses; and by deleting any provision that may undermine the Philadelphia local zoning 12 2/21/07 RULES - Bills 070006, 08 through 13 controls; all under certain terms and conditions. Bill No. 070009, an ordinance 5 to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Reed Street, Tasker Street (extended), Christopher Columbus Boulevard, and the Delaware River. Bill No. 070010, an ordinance 12 amending Chapter 14-400 of the Philadelphia Code entitled "Commercial Entertainment Districts," by prohibiting districts within one mile of one another; providing additional restrictions for gross floor area, open area, and waterfront setbacks requirements; and providing for additional signage controls, all under certain terms and conditions. Bill No. 070011, an ordinance 23 amending Section 14-1600 of the Philadelphia Code entitled "Miscellaneous," by adding a new section 13 2/21/07 RULES - Bills 070006, 08 through 13 entitled "Prohibition on Licensed Gaming Facilities," prohibiting the erection, construction, alteration, or use of licensed gaming facilities and providing that no variance may be granted from such prohibition, all under certain terms and conditions. Bill No. 070012, an ordinance 10 amending Chapter 14-1400 of the Philadelphia Code, entitled "Commercial Entertainment District," by providing that no ordinance designating a Commercial Entertainment District may be enacted unless a Neighborhood Improvement District has first been created and includes within its service area the proposed Commercial Entertainment District, all under certain terms and conditions. And Bill No. 070013, an ordinance amending Section 14-1605 of the Philadelphia Code, entitled "Regulated Uses," by prohibiting regulated uses within 1,000 feet of any 14 2/21/07 RULES - Bills 070006, 08 through 13 Commercial Entertainment District and adding "Payday Lenders" as a regulated use, all under certain terms and conditions.
Thank you. I would like the record to reflect that we do have a quorum present. To my extreme left is Councilman Kelly, Councilman Savage, and Councilman Greenlee. To my extreme right is Councilman Kenney and also Councilman Clarke. At this time, the Chair recognizes Councilman DiCicco.
First I'd like to thank everyone for coming today. It is truly appreciated. Today, Madam President, it's going to be a long day, but I think we 15 2/21/07 RULES - Bills 070006, 08 through 13 might actually accomplish something today, and it wouldn't happen without your support. The question is: What are we supporting? What am I trying to do? The intent behind this legislation has been questioned, and I wanted to make myself perfectly clear. " I didn't take that as an ethnic slur. To that extent, he's right, although it's a bit more thought out than that. This package of legislation includes a Plan A, but it also includes a Plan B and C and D. It attacks the issue of gaming from a lot of different angles, and that's a good thing. We all know that if any of these bills are enacted, the operators are going to challenge these initiatives in court, just like we're challenging 16 2/21/07 RULES - Bills 070006, 08 through 13 the Pennsylvania Gaming Commission Board's decision in the court. We may lose some of these challenges, just like we might lose our appeal. So be it, because we might win also. That's the great thing about the courts: You never know what the person in the black robe is going to do, and you always know that there's going to be someone listening, because at least in part, that's why we're so angry. The Gaming Act passed in the middle of the night, the General Assembly voted four times to preempt the City's local zoning controls, and I should note that we finally won that one, and not because of any one legislator, but because of the unity and strength of the people in this room and those who couldn't make it here today. When the board made their the final decision, they did so in the face of logic, despite numerous public comments 17 2/21/07 RULES - Bills 070006, 08 through 13 to the contrary to their wards. All in all, this process has been screwed up from the start, and none of us in the City has had a voice. It's time to make sure we get that voice back. And if Harrisburg ignores us, then maybe a judge will force them to listen. That's what this package of legislation is about. That's what plans A through D are, and that's why I hope this committee gives every bill a favorable recommendation and suspends the rules. What are the plans? Plan A is Bill No. 070011. It bans gaming as a use completely, with no 19 option for a variance from the Zoning Board of Adjustments. It directly challenges the State's authority to dictate business and industry in Philadelphia. And I know it will be challenged as an exclusionary zoning, 18 2/21/07 RULES - Bills 070006, 08 through 13 and I admit the chances of it holding up in court are slim, but it's time to stand up and be counted. If Plan A fails, however, there is a Plan B; in other words, we won't have all of our eggs in one basket. Plan B is Bill No. 070008. By passing Bill No. 070008, we will delete gaming as a use for the Commercial Entertainment District, better known as a CED. That means we can put the underlying CED controls in place but not allow gaming by right and still require public review and input via the Zoning Board, and it gives people another opportunity to challenge the issuance of the gaming permit in a court of law. Plan C, which is Bill No. 21 070012, should be voted out of committee and held on the Council's calendar for final passage. If Plans A and B fail, I will call this bill for a vote to help guarantee that the near neighbors of 19 2/21/07 RULES - Bills 070006, 08 through 13 these facilities have a choice on whether they want them built or not. It sets up a de facto referenda process for those directly impacted by the site. Bill No. 070006 is Plan D and requires that gaming facilities should obtain a zoning certificate from the Zoning Board of Adjustments. The remaining bill should be passed irrespective of our opinion on gaming specifically. Bill No.
070013 provides important controls for the near neighborhoods, if these facilities are ever built, by providing restrictions for regulated uses. " Bill No. 070010 provides more specific controls and closes loopholes that developers might attempt to use to circumvent the CED's original intent. And finally, Bill No. 070009 is an attempt to block any further attempt 20 2/21/07 RULES - Bills 070006, 08 through 13 by Foxwoods to pull zoning permits. It came to our attention that the developer tried to pull permits in January and then intended to file a use variance. I don't think that's appropriate, and the effort continues to show that Foxwoods is less than honorable. That's the package. It may hold up in the courts and it may not, but maybe most important is that this package of legislation finally gives Philadelphians a voice that the General Assembly, the Gaming Board, and the Governor never gave them. That's our job. I'm proud to do it, and I'm happy that we're here having this discussion today. Thank you, Madam President. )
Thank you, Councilman. I would like the record to reflect that Councilwoman Miller has 21 2/21/07 RULES - Bills 070006, 08 through 13 joined the committee. I would ask Mr. McPherson to please call our first witness. MR. McPHERSON: The first witnesses are Romulo Diaz and Thomas Chapman. (Witnesses come forward.)
Good morning. CITY SOLICITOR DIAZ: Good morning.
Please identify yourself for the record. Do you have copies of your testimony? CITY SOLICITOR DIAZ: We do, Madam President, and I believe they've been distributed.
We don't have them. CITY SOLICITOR DIAZ: I don't know if they have been made available, but we will make sure that the members of the committee get their copies immediately. 22 2/21/07 RULES - Bills 070006, 08 through 13
Thank you. You may proceed. CITY SOLICITOR DIAZ: Thank you Madam President. Again, good morning Madam President and members of the committee. I am City Solicitor Romulo Diaz, Jr. 's 070006 and 070008 through 070013. I'm accompanied by Thomas Chapman of the Philadelphia City Planning Commission. The introduction of gaming in the Commonwealth and in Philadelphia represents an historic economic development opportunity. 5 billion annually in gaming taxes and will use that money to reduce property and wage taxes; spur economic development, including expansion of the Pennsylvania Convention Center; and support the State's race-horsing 23 2/21/07 RULES - Bills 070006, 08 through 13 industry. In Philadelphia, the development of just the first phase of the two casinos will employ approximately 1,000 construction workers who will earn $34 million in wages. Once open, the casinos will permanently employ approximately 2,000 workers mostly from Philadelphia, and will spin off economic development that will employ thousands more. And our hospitality industry is excited about the casinos as another visitor attraction and the funding for Convention Center expansion. The City will receive 4 percent of the gross revenue at these casinos as host fees. The first $5 million each year will go to the Philadelphia School District to enhance the public education of Philadelphia's children. The remaining 20 to $25 million will be an annual addition to the City's General Fund. In the proposed Five-Year Plan, 24 2/21/07 RULES - Bills 070006, 08 through 13 these revenues are projected to begin in fiscal 2009. To be sure, gaming (indiscernible) presents the City with the challenge of balancing communitywide interest with the issues that will face the neighborhoods directly impacted by the two casinos. Notwithstanding the views of some outside Philadelphia, we believe it is appropriate for the City to retain local land use control to assure a proper balance is struck. The City is the expert in this area, as we have demonstrated time and time again, be it the stadium complex development, the Comcast Center, or numerous other local development projects. But we are only able to exercise our authority in a manner that complements rather than thwarts the state statutory scheme. The Pennsylvania Race Horse Development and Gaming Act and the 25 2/21/07 RULES - Bills 070006, 08 through 13 regulations promulgated thereunder set forth a comprehensive regulatory framework. Section 1202 of the Gaming Act vests the Gaming Control Board with general and sole regulatory authority over the conduct of gaming or related activities. Section 1304(b)1 of the Gaming Act dictates that two casinos will be licensed in Philadelphia and that each casino will be licensed by the Gaming Control Board. Section 1329 of the Gaming Act further makes clear that casinos cannot be relocated by any entity other than the Gaming Control Board. The decision of where the casinos go is a State decision exercised by the Gaming Control Board. The City's powers in this regard are limited. We must respect the Gaming Control Board's licensing decisions -- decision, or else we will face almost certain defeat in 2/21/07 RULES - Bills 070006, 08 through the courts and inevitably will lose any local land use control. The Commercial Entertainment District zoning classification created by City Council last year on recommendation of the Philadelphia Gaming Advisory Task Force is a local regulatory framework that I believe is consistent with the comprehensive State scheme. The CED framework will allow casinos and other future major entertainment developments to be undertaken in a responsible manner with reasonable standards and community input. Amendments to the CED classification are any other local land use authority must be structured to avoid conflict with the Commonwealth statutory requirements.
To do otherwise would invite unnecessary litigation as well as legal and legislative challenges to land use control. 27 2/21/07 RULES - Bills 070006, 08 through Finally, to the extent that such litigation delays the opening of Philadelphia casinos, there could be significant impacts on the revenue projections in the proposed Five-Year Plan. I urge you to consider these potentially serious fiscal implications when considering the changes to the CED framework represented by these bills. This concludes my testimony. I appreciate the opportunity to appear before you today on this important issue, and would be pleased to answer any questions with respect to the specific bills after Mr. Chapman presents the recommendations of the Planning Commission.
So, Mr. Diaz, in essence, are you telling the committee that the bills before us are not legal? CITY SOLICITOR DIAZ: I am not saying that, Madam President. What I am trying to suggest is 28 2/21/07 RULES - Bills 070006, 08 through that there is a continuum of concerns on my part about the ultimate review of those bills should they be enacted. The bill, for example, that would preempt zoning entirely for gaming in the City of Philadelphia perhaps is at one extreme end of that continuum, and I would have to say that were it enacted by City Council, that my concerns about the practical effects of that bill and my concerns about the authority that has been expressed in legislation adopted by the General Assembly would mean that I would be hard-pressed to argue in support of that particular bill as to its effects, the practical effects. On the other hand, I understand -- and I have shared with Councilmembers previously -- that as City Solicitor, I represent City Council and have a duty of loyalty to City Council to attempt to effectuate its legislative will. I believe that City 29 2/21/07 RULES - Bills 070006, 08 through 2 Council's legislative will is deserving 3 of respect and deference by the courts. 4 But in the context of a very 5 comprehensive and complete regulatory 6 framework that has been established by 7 the Commonwealth, it is my opinion with 8 respect to that particular bill -- and I 9 use that only as an example -- that I 10 would have to say in all candor that I 11 would find it highly unlikely that the 12 courts would ultimately determine that 13 such a bill would be legal. That is a court determination. My responsibility, I believe, is to -- is to respect the legislative will, but I also believe that I have a responsibility to be candid and to share with Councilmembers today my concerns about an ultimate decision of the courts. And it is my conclusion that such a bill would be most likely struck down by the courts as preempted by the Commonwealth comprehensive regulatory 30 2/21/07 RULES - Bills 070006, 08 through 2 scheme for gaming in the City of 3 Philadelphia. 4
Thank 5 you. 6 The Chair recognizes Councilman 7 Clarke. 8
Thank you, 9 Madam President. 10 Good morning, gentlemen. 11 WITNESS PANEL: Good morning. 12
Mr. Diaz, 13 your response to the Council President, the assumption is that it's an informal response, and we have not asked for an official Solicitor's ruling; am I correct? CITY SOLICITOR DIAZ: That is correct.
So is it suggested that we ask for an official Solicitor's ruling on each individual bill that's been before us today? CITY SOLICITOR DIAZ: I -- I'm not attempting -- let me just be very 31 2/21/07 RULES - Bills 070006, 08 through direct about this because I know it's an important issue; it's of great concern to members of this Council, and it's certainly of great consequence to the City generally. It is -- this is an area which is -- has been of great interest and ongoing dialogue between myself and my office and members of City Council. And it is in that -- it's in that context that I want to be very careful about not overstepping what I believe is an appropriate bound at this early juncture in connection with the bills. I'm not suggesting that I should be asked for a legal opinion, but if asked, I would certainly provide one to you or other members of Council. But I am very concerned about the practical implications of these bills because it's entirely conceivable at some point down the road -- not on the face of some of these bills, but down the road, as factual determinations 32 2/21/07 RULES - Bills 070006, 08 through 2 are made, that an L&I inspector, for 3 example, or an L&I permit official would 4 be put to the question of whether a 5 permit should be issued or not. And 6 it's at that juncture that I believe the 7 facts as they will be known at that 8 time, which I don't have before me 9 today, might very well indicate that a 10 permit could not be issued. 11 In that circumstance where we 12 do not issue a permit and there is an 13 appeal under the Gaming Act to the Pennsylvania Supreme Court, I believe that the court would look at the reasonableness of the -- of the standards that would be implemented by the City of Philadelphia in making that decision and how we would have implemented those standards. And I believe that it would be much, much harder to sustain an appeal on behalf of the City of Philadelphia's authority if we were to be found unreasonable, as I believe we might be 33 2/21/07 RULES - Bills 070006, 08 through 2 found with regard to a bill that says 3 you may not have a gaming establishment 4 anywhere in the City of Philadelphia. 5 And I look at this from the 6 perspective of the Commercial 7 Entertainment District legislation which 8 was crafted upon the recommendation of 9 the Philadelphia Gaming Advisory Task 10 Force. 11 And it seems to me, from all 12 that I have reviewed as to the state 13 regulatory scheme and that particular legislation, that it is a proper balancing of our interests, it is a reasonable extension of our local land use controls. I believe that it should sustain court review if it were ever challenged. I don't have that same sense of confidence, Councilman Clarke, with respect to some of the other bills before this committee today.
Did the Pennsylvania legislature or the Gaming 34 2/21/07 RULES - Bills 070006, 08 through Reform Commission review the CED that was proposed earlier? CITY SOLICITOR DIAZ: Yes, Councilman Clarke. In fact, the Gaming Advisory Task Force developed a model regulatory bill for local land use controls, and the CED legislation ultimately passed by City Council last year is essentially in conformity with that recommendation. We've reviewed it very closely. We believe that it's a very strong piece of legislation. I believe that ultimately, the court -- that is, the Pennsylvania Supreme Court -- would find it to be reasonable, and that is the process that we have, I believe, previously provided legal opinions to Council on. And we continue to stand by that opinion.
Did they respond formally, or was it just a review and no response? I mean, I'm not clear on how 35 2/21/07 RULES - Bills 070006, 08 through that -- I know there was some discussion during the course of the hearings about whether or not this allowed us to circumvent the state preemption, and if we had not done something that the State would have preempted us totally as it relates to rezoning. Was there a formal response from them with respect to that? CITY SOLICITOR DIAZ: No, and let me -- I think I understand your question, Councilman. Let me see if I can respond to it this way. Once the Supreme Court struck down the provision that would have preempted local land use controls at all --
Right. CITY SOLICITOR DIAZ: -- there were a series of steps taking by the General Assembly, some in the General Assembly, to essentially fix the problems that had been found to exist with that provision by the Pennsylvania 36 2/21/07 RULES - Bills 070006, 08 through Supreme Court. Essentially, the Supreme Court said that there was a standard list delegation of legislative authority to the Gaming Control Board in making decisions about which comments or recommendations of local governments it would take into account in making a licensing decision. And once that preemption provision was struck down by the court, there was nothing to take its place short of a new legislative provision that was being considered by the General Assembly. Ultimately, there was no 18 replacement for that preemption, but there is a provision in the Gaming Act which provides that any appeal with respect to local land use issues -- and I can provide you with that particular language, but for the sake of brevity, any appeals taken from local land use decisions is one for which the 37 2/21/07 RULES - Bills 070006, 08 through 2 Pennsylvania Supreme Court has original 3 jurisdiction. 4
Right. 5 CITY SOLICITOR DIAZ: And 6 appeals will go immediately to the 7 Pennsylvania Supreme Court on any 8 decisions related to those actions. 9
Okay. 10 CITY SOLICITOR DIAZ: So there 11 has not been an opinion as such issued 12 by the General Assembly or the Gaming 13 Control Board. But the CED legislation, which originated in recommendations of the Philadelphian Gaming Advisory Task Force, we believed then, and I served as general counsel to that task force, and I believe now that that represents a reasonable balancing of the interests of the State with regard to comprehensive regulation framework for gaming in the Commonwealth and the local interests of Philadelphia and its citizens to ensure that any casinos that are constructed 38 2/21/07 RULES - Bills 070006, 08 through are done so in a way that respects our local issues without thwarting the state regulatory efforts.
Okay. One 6 last question, and I know that other 7 members are interested in having 8 questions. 9 Mr. Diaz, I'm assuming that 10 you're going to be asked to give a legal 11 opinion on all of the bills probably. 12 I'm a little concerned -- and I'm -- 13 please don't take this as me questioning your credibility and your sincerity in your job -- that the testimony references the possibilities and the opportunities for gaming in the City of Philadelphia. And from my perspective, it would probably have been better if you had not given that portion of the testimony because you are the legal representative of both the Council and the Mayor. And I would have felt a lot more comfortable if you didn't have that 39 2/21/07 RULES - Bills 070006, 08 through part of your earlier testimony. (Applause.)
And, again, 5 I want to emphasize, 'cause I know you 6 quite well, all right? And I know you 7 are an extremely credible person, and in 8 no way, shape, or form am I trying to 9 imply, and I'm hoping no one takes it 10 that I'm trying to imply that you won't 11 do your job in the appropriate way. 12 But when you proceed with the 13 legal opinion, can we base it soley on the legal facts as it relates to this legislation and the state preemption issue, there will be, you know, no 17 reference at all about anything else other than the pure merits of the law. (Applause.) CITY SOLICITOR DIAZ: Councilman, let me respond this way. I think I was very careful in crafting the testimony despite less than hours -- 24 substantially less than 24 hours to craft it. 40 2/21/07 RULES - Bills 070006, 08 through 13 I attempted, and I think I succeeded, in being clear that with regard to the legal issues I had concerns and expressed them with regard to the other issues. They are offered for your -- for your consideration. They are not legal factors that I would take into account in connection with the legal opinion as to the efficacy of particular bills. Having said that, I think it would be remiss of me, appearing with Mr. Chapman today with regard to these bills, not to indicate that the revenues that are being projected from these casino operations are not only important to the Commonwealth but also to the City of Philadelphia treasury. And, in fact, it is my belief that as much of the incentive for the comprehensiveness of the state regulatory scheme in order to allow for the revenues generated, for example, 41 2/21/07 RULES - Bills 070006, 08 through from Act 71, the Gaming Act, to be available to make the programs that are authorized with regard to Act 72 with respect to Commonwealth tax reductions possible. And so I don't want to overlook that fact, but that certainly would not be the basis for a legal conclusion and opinion rendered upon request to this council.
You're welcome. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. Good morning, Mr. Diaz. CITY SOLICITOR DIAZ: Good morning, Councilman.
You kind of answered this question in one of 42 2/21/07 RULES - Bills 070006, 08 through Councilman Clarke's earlier questions, but I -- just so I'm really clear, in your statement, you say we will face almost certain defeats in the courts and inevitably will lose any land use control. Now, you talked about the Commercial Entertainment District. Could be a little more specific as far as what else you're referring to there that we could lose if this gets to the courts in your opinion? CITY SOLICITOR DIAZ: Well, my -- my -- my concern is not only in connection with how expansive a court might render its decision --
Mm-hmm. CITY SOLICITOR DIAZ: -- if there is an appeal taken from a contrary decision on issuing a permit, for example, for a construction.
Mm-hmm. CITY SOLICITOR DIAZ: But also, it's to the response that might be 43 2/21/07 RULES - Bills 070006, 08 through anticipated from the General Assembly.
Mm-hmm. 4 CITY SOLICITOR DIAZ: We know 5 that the effort to prevent the General 6 Assembly from actually adopting as part 7 of revisions to the Gaming Act, but to 8 prevent the adoption of complete 9 preemption of the City of Philadelphia 10 with regard to local land use control 11 was very much a real possibility in the 12 last session of the General Assembly. 13 I think it would be hard to avoid the possibility that that issue would arise again in the context of litigation associated with a denial of -- what I would consider to be an unreasonable denial of permits to gaming operators and licensees in the City of Philadelphia. I've tried to suggest what I think a reasonable basis might be. I think a reasonable basis would be where there is a conflict between the CED legislation, which both licensees have 44 2/21/07 RULES - Bills 070006, 08 through committed in hearings before the Gaming Control Board and in their expressions to the City Administration to adhering to, I think that a denial of some approval consistent with the CED legislation, I believe the City would have a strong base for having that denial upheld. On the other hand, I believe that a denial which is based upon on an across-the-board prevention of casinos operating in Philadelphia would be one that would be skeptically reviewed and received by the Pennsylvania Supreme Court, and I think would most likely reignite efforts to preempt the City of Philadelphia's rightful responsibility and rightful opportunity to review local land use issues that affect its citizens.
Okay. So you weren't just talking about the courts; you were talking about what the legislature might do. That's what I 45 2/21/07 RULES - Bills 070006, 08 through thought, but I wanted to make sure. Thank you. Thank you, Madam President.
6 You're welcome. 7 Are there any other questions 8 from members of the committee? 9 (No questions.) 10
Good morning once 13 again, Madam President and members of the Rules Committee. My name is Thomas Chapman. I'm here today to testify on behalf of the Planning Commission regarding Bills 070006 and 070008 through 070013. Before the committee this morning are seven bills introduced by Councilman DiCicco that would amend the Philadelphia Code as it relates to gaming or to the sites where gaming is proposed. In December 2005, we testified 46 2/21/07 RULES - Bills 070006, 08 through before this committee in support of adoption of a new zoning classification, the Commercial Term District. Bill No. " The creation of this new zoning classification was one of the many recommendations of the Philadelphia Gaming Advisory Task Force. The purpose of this zoning classification is to allow for the orderly development of major entertainment facilities, including licensed gaming facilities, in the City of Philadelphia. While Bill No. 051028 added the provisions of the new district to the Zoning Code, it did not map the district anywhere in the City; that still requires further action by City Council. Since enactment of CED legislation and in accordance with the General Assembly's July 2004 mandate of two casinos in the City of Philadelphia, 47 2/21/07 RULES - Bills 070006, 08 through 2 the State Gaming Control Board has 3 selected the two licensees who will 4 operate those casinos. 5 The arrival of new businesses 6 that will provide thousands of new jobs 7 could be the most important development 8 in the City in the past 50 years. And 9 accordingly, this city has taken 10 appropriate steps to plan for this 11 industry. 12 We continue to believe that the 13 City must act effectively and responsibly to ensure that the arrival of casinos is managed in a manner that maximizes returns and minimizes impacts on the people of Philadelphia. At this point, I would like to direct my testimony to the specifics of the bills on today's hearing list. Bill 070006 would amend Section 22 14-1605 of the Philadelphia Zoning Code by allowing licensed gaming facilities as a regulated use. The regulated uses section of the Zoning Code places a 48 2/21/07 RULES - Bills 070006, 08 through 2 number of restrictions on uses that, by 3 their very nature, have been recognized 4 as having negative impacts on 5 surrounding communities, especially when 6 these uses are concentrated in a. 7 Zoning Board of Adjustments approval is 8 almost always required for establishment 9 of a new regulated use anywhere in the 10 City. 11 We believe that the enactment 12 of Bill No. 070006 is unnecessary for 13 several reasons. The provisions of the Commercial Entertainment District defines licensed gaming facilities and sets forth the rules under such facilities can be established in the City of Philadelphia. Thus, gaming remains a prohibited use and not a regulated use everywhere in the City except on properties zoned CED. Because any CED district development plan will require two ordinances of City Council and review by 49 2/21/07 RULES - Bills 070006, 08 through 2 the Planning Commission, we believe that 3 there is sufficient regulation of such 4 uses. 5 The Planning Commission at its 6 meeting of February 20, 2007, 7 recommended that Bill No. 070006 not be 8 approved. 9 Bill No. 070008 would amend the 10 provisions of the Commercial 11 Entertainment District chapter of the 12 Zoning Code by deleting the definition 13 of "licensed gaming facilities" by removing license gaming facilities and offtrack betting as permitted use by deleting provisions authorizing the Planning Commission to improve temporary facilities and by deleting certain other provisions.
Removing the definition of "licensed gaming facilities" and removing license gaming facilities and offtrack betting as permitted uses under the provisions of the CED results in a situation where these uses would not be 50 2/21/07 RULES - Bills 070006, 08 through permitted as of right anywhere in the City of Philadelphia. The creation of the CED was part of the City's effort to maintain zoning authority regarding the development of the new casinos. While it is true under state law that the City could not, and cannot, choose locations where gaming is permitted, we believe that the provisions of the CED allow for significant and appropriate development controls. The deletion of the paragraph authorizing the Planning Commission to approve temporary facilities is appropriate cleanup, as neither casino plans a temporary facility. We do not believe it is necessary to remove Sections 14-14052 and 3, nor do we believe it's problematic to do so. With these exceptions, the Planning Commission at its meeting of February 20, 2007, recommended that Bill 25 No. 070008 not be approved. 51 2/21/07 RULES - Bills 070006, 08 through 13 Bill No. 070009 would amend the Philadelphia Zoning Maps by changes the zoning designation of the area bounded by Reed Street, Tasker Street, Christopher Columbus Boulevard, and the Delaware River from the existing C-3 Commercial to partly R-10A Residential and partly C-3 Commercial. This property is the site of the proposed Foxwoods Casino. R-10A residential zoning is a classification that is mapped primarily in the older rowhome neighborhoods of the City and permits single-family dwellings on 1440 square-feet lots. This classification does not permit commercial or entertainment uses and is not an appropriate use of this large waterfront parcel. We do, however, believe a zoning change to the CED classification is appropriate, and we expect the Administration shortly to transmit legislation to rezone the site to the 52 2/21/07 RULES - Bills 070006, 08 through 2 CED zoning classification. 3 The Planning Commission at its 4 meeting of February 20, 2007, 5 recommended that Bill No. 070009 not be 6 approved. 7 Bill No. 070010 would amend the 8 provisions of the Commercial 9 Entertainment District by prohibiting 10 CED districts within one mile of one 11 another by adding additional 12 restrictions on gross floor area, open 13 space, and waterfront setbacks, and by amending signage controls. The establishment of a provision requiring a one-mile separation between parcels designated CED would not impact the sites selected in December by the Gaming Control Board because those sites are separated by more than one mile. However, in drafting the CED legislation, it was anticipated that CED districts could and would be mapped in other locations other than casino sites. 53 2/21/07 RULES - Bills 070006, 08 through 2 We believe that that amendment would 3 discourage the use of the CED zoning 4 designation beyond the two current 5 gaming sites. 6 In the absence of this 7 amendment, Council would continue to 8 have the option to use or not use the 9 zoning designation as it deems 10 appropriate in the future. We thus do 11 not support this amendment to the 12 district. 1. This provision of the CED designation allows flexibility where conditions warrant some relief from a setback requirement. This provision remains appropriate because City Council is required to approve in the plan of development -- the plan of development, rather, under the provisions of the CED after receiving a recommendation of the Planning Commission so that any such relief would come under considerable 54 2/21/07 RULES - Bills 070006, 08 through 2 scrutiny. Accordingly, we did not 3 support this amendment to the district. 4 There are no objections to the 5 amendments proposed for Sections 6 14-14062 and 3 regarding gross floor 7 area and open area.
8 With the exception noted above, 9 the Planning Commission at its meeting 10 of February 20, 2007, recommended that 11 Bill No. 0700010 not be approved. 12 Bill No. 070011 would amend 13 Section 14-1600 of the Philadelphia Code by prohibiting the establishment ment of licensed gaming facilities in the City of Philadelphia and by prohibiting the Zoning Board of Adjustments, except where the denial of a variance would affect an unconstitutional taking, from granting variances from this provision of the Code. We believe that it is already prohibited, except in instances where Council chooses to allow it and rezone a property to the CED zoning designation. 55 2/21/07 RULES - Bills 070006, 08 through The Planning Commission at its meeting of February 20, 2007, recommended that Bill No. 070011 not be approved. Bill No. 070012 would amend the provisions of the Commercial Entertainment District chapter Zoning Code by providing that no ordinance 10 designating a CED may be enacted unless a Neighborhood Improvement District for that area has first been created. While we understand the need for gaming to properly and completely address the impacts that it will have on the surrounding community, we believe that a conclusion that those impacts can be mitigated only through the enactment of a Neighborhood Improvement District is incorrect. There are several other possible models that may be implemented, and the choice of this model is premature because a Neighborhood Improvement District is not necessarily 56 2/21/07 RULES - Bills 070006, 08 through 2 the right vehicle to meet the needs of 3 these communities. 4 The Planning Commission at its 5 meeting of February 20, 2007, 6 recommended that Bill No. 070012 not be 7 approved. 8 Bill No. 070013 would amend 9 Section 14-1605 of the Philadelphia Code 10 by adding Pay Day Lenders as a regulated 11 use and by prohibiting regulated uses 12 within a thousand feet of any property 13 zoned Commercial Entertainment District. Similar businesses such as check-cashing establishments and pawn shops have been designated as regulated uses under provisions of the Zoning Code for many years, and we believe that Pay Day Lenders are exactly the type of use that are inappropriate in close proximity to the gaming facilities. However, we believe that the definition of "Pay Day Lenders" is overbroad and will potentially eliminate perfectly legitimate and appropriate 57 2/21/07 RULES - Bills 070006, 08 through 2 commerce. As such, we have been 3 researching the wording for an 4 appropriate amendment to that 5 definition, and will respond shortly. 6 The Planning Commission at its 7 meeting of February 20, 2007, 8 recommended that Bill No. " 12 This concludes my testimony. I 13 appreciate the opportunity to appear before you this morning along with Romulo Diaz to testify on this important issue and would be happy to answer any questions from the committee.
Are there any questions from members of the committee? The Chair recognizes Councilman Greenlee. 58 2/21/07 RULES - Bills 070006, 08 through 2
Just one 6 question. 7 When you discuss Bill No. 8 070012, you say at the end here, "There 9 are several possible models that may be 10 implemented, and the choice of 11 Neighborhood Improvement District is not 12 necessarily the right vehicle." 13 Could you be a little more specific? What else -- I mean, what other possibilities could you have in mind?
Well, there could simply be a contractual agreement between a community group and gaming interests and also the possibility of a Special Services District.
Okay. CITY SOLICITOR DIAZ: May I amplify on that answer?
Sure. 59 2/21/07 RULES - Bills 070006, 08 through CITY SOLICITOR DIAZ: One of the specific areas that the Administration is currently undertaking is the negotiation of what we've called a "developer agreement" with each of the two licensees. And not unlike the priority issues that the Mayor in his letter of last December to the Gaming Control Board identified, there were priority areas for review of the five applications. Those same priority areas include fiscal impacts like public safety issues and neighborhood impacts. Those same priority issues are being used as a framework for the developer negotiations. So we're looking specifically at what kind of community reinvestments are being agreed to by the licensees as we consider the ultimate plans of development that will come before the operating departments, the Planning Commission, and then ultimately before 60 2/21/07 RULES - Bills 070006, 08 through 2 City Council as part of the CED process. 3
All 4 right. Thank you. 5 Thank you, Madam President. 6
7 You're welcome. 8 Are there any other questions 9 from members of the committee? 10 The Chair recognizes Councilman 11 DiCicco. 12
Just to go 13 back to an earlier question that was raised by my colleague Councilman Clarke to the City Solicitor, it is not unusual that City Council has, in the past, taken a different position than the recommendations of the City Solicitor. I can remember a couple years ago, this Council approved the funding for condominium trash collection. The City Solicitor's opinion was that this council did not have the right to make those decisions. We went to court, and we were successful -- we, meaning 61 2/21/07 RULES - Bills 070006, 08 through Council. Although the trash is still not being picked up, we did win that battle in court. So I just wanted to point that out to my colleague that it's not (indiscernible) of the Solicitor's opinion that comes down to something that we are definitely bound by it; it is strictly that, an opinion. And I do respect the Solicitor's opinion, and I respect the hard work that he's done on all of these matters. Just to go back to Mr. Chapman, when the Planning Commission made its recommendations on these bills -- and this is unusual. You and I and the Planning Commission have really worked quite a well over the past eleven years. We've worked on some major development in particular in my district. But all of those development schemes had a component in them that is missing in this, and that is that there 62 2/21/07 RULES - Bills 070006, 08 through 2 was public input. I'm a process guy. 3 (Applause.) 4 (Cheers.) 5
I'm a 6 process person. And I believe in that 7 process, although sometimes it takes a 8 little bit more time to get us to where 9 we eventually want to be. 10 But all of these community 11 groups have taken the time out of their 12 lives, their personal lives, with no 13 financial reward, and took the time to work with developers -- small development, large development. Just recently, the folks in Northern Liberties, after six, seven months of negotiations and deliberations, along with the Planning Commission's input, approved the development of a 65-story high-rise development on Delaware Avenue, and no 23 one ever in their wildest dreams would ever believe -- and myself included initially -- that a community group 63 2/21/07 RULES - Bills 070006, 08 through would have approved and given the green light to such a development. But we did it because the folks who live in that neighborhood had an opportunity to talk about the issues as it related to that development, what the daily impact to their lives would be, and we worked through a process. We are not permitted to do that under the Act 71. And for the City and the Planning Commission, in my opinion, with no disrespect, to take the position that, well, we just have to basically roll over on this one and agree that we're going to lose in court, and therefore, let's not do these bills, I think, is irresponsible for us to do that. (Applause.) (Cheers.)
And furthermore, in your testimony on -- and I'll -- CITY SOLICITOR DIAZ: 64 2/21/07 RULES - Bills 070006, 08 through 13 Councilman --
-- in the second paragraph, the arrival of new businesses that provide thousands of jobs -- CITY SOLICITOR DIAZ: Councilman --
-- could be, could be the most important new development in the City's history in the past 50 years. It could be, but it also could be a disaster. We don't -- (Applause.) (Cheers.)
And I'm a pro-development guy, 'cause there are a lot of people in this room today who, I'm sure, will put the political spin on that I'm anti-development. I've been probably one of the most pro-development people in this council in the last ten years. You know, I authored the ten-year tax 65 2/21/07 RULES - Bills 070006, 08 through basement that caused the building boom in this city, so I don't -- and I'm proud of that. So I'm not against development; I'm for development. I'm for development if it takes into consideration what the impact to the neighborhoods would be. And when you look at the remarks in this on , did anyone take a look at what the possible negative impacts to the surrounding businesses would be in the southern end of Columbus Boulevard? (Applause.) (Cheers.)
Has anyone taken into consideration the 15 to 25,000 additional cars that will be driving down that corridor, the Delaware Avenue Columbus Boulevard, on a daily basis? Whether Ikea, whether Home Depot, whether -- and I won't even use 66 2/21/07 RULES - Bills 070006, 08 through Wal-Mart 'cause they're not union, but the other businesses down there will they be able to survive? Will they be able to compete to get their customers in? There are people who work in those facilities who are primarily Philadelphians who are earning a salary to support their families. Will those facilities eventually have to close up because the customers will not be able to get to them? We don't know that. We don't know that because we have not been permitted to engage in that dialogue. And I will tell you, I will tell you, having represented the folks along that corridor from Whitman all the way up through Port Richmond and beyond: These are not people who are saying -- these are not NIMBYs, and I can tell you that for a fact. Yes, sometimes they get a little concerned. " 4 But I will tell you, and I 5 think you would agree, on the eleven 6 years that I have been here and the 7 eleven years that I've been working with 8 these civic associations, we've always 9 come to a compromise to allow for 10 something to be built in everyone's best 11 interests, not in just the interests of 12 casino operators. 13 And that's what we're fighting for today. ) CITY SOLICITOR DIAZ: Councilman, if I may respond. I think there were a number of questions, and let me try to respond to them very quickly. Yes, you're right in connection with the condo trash case that, in fact, the ultimate decision was that the -- that the legislative will with respect 68 2/21/07 RULES - Bills 070006, 08 through 2 to a type of service -- not as to the 3 specifics but as to a class of 4 service -- was one that should be 5 respected. 6 And, in fact, that decision and 7 many of the discussions that I have had 8 and the City Solicitor's Office has had 9 with members of Council informs the 10 way -- the perspective I bring to this 11 issue today. 12 But that, you will recall, was 13 an issue where we had an institutional difference between the executive and administrative branch on the one hand and the legislative branch on the other. We haven't gotten there yet. And so, when I look at these issues about bills being considered where the executive branch hasn't spoken, there hasn't been passage, I'm looking at it from the perspective of what if? And I am attempting to be properly discrete recognizing that we're 69 2/21/07 RULES - Bills 070006, 08 through 2 early in this process, and many of the 3 concerns that I would have from a legal 4 perspective could be felt later down the 5 process as part of the practical result 6 of decisions being reached today. 7 But I have tried to be 8 balanced, I've tried to be informed with 9 regard to my perspective today based 10 upon the experience such as the condo 11 trash case, and I think I have done so. 12 Secondly, with respect to 13 community input, we also have to, you know, remind ourselves that this is not the first time that this matter has come before Council or the Administration or the City generally. With regard to the Philadelphia Gaming Advisory Task Force, my recollection is that that was established in 2005. And one of the first efforts that it engaged in was in a -- to schedule and hold a number of community forums throughout all of the districts, Councilmatic districts, and 70 2/21/07 RULES - Bills 070006, 08 through 2 in virtually all parts of the City to 3 make sure that there was early 4 opportunities for community views to be 5 heard on five applications before we 6 knew which of the applicants would be 7 successful in receiving a license. ) 13 CITY SOLICITOR DIAZ: You and I specifically have been in meetings with community groups where we have talked about the CED legislation, heard their concerns.
And one of the things that we've also, I think, built into the CED process is that this is going to be an opportunity for the public to be heard both in terms of the plan of the development review by the Planning Commission, which is an integral part of that process; and secondly, once a 71 2/21/07 RULES - Bills 070006, 08 through decision has been reached and a recommendation made to Council, there will also be an opportunity for Council with respect to its review of the plan of development for the two districts once they're created to also hold public hearings. I have been informed by the Mayor that he intends to begin a series of community engagements in the very near future particularly focused on these two casino locations and the adjacent neighborhoods. So from 2005 until today, there have been numerous opportunities for the community to be heard. ) CITY SOLICITOR DIAZ: I am not trying to justify today --
72 2/21/07 RULES - Bills 070006, 08 through Please -- excuse me. Please, let's have respect for each other. Thank you. CITY SOLICITOR DIAZ: Thank you, Madam President.
9 Please proceed. 10 CITY SOLICITOR DIAZ: I'm not 11 trying to justify today the decision of 12 Gaming Control Board. They've stated 13 the reasons for the issuance of the two licenses, and -- and they're the ones who are responsible for supporting that in connection with any potential appeals. But with respect to the City's efforts, I can say that there have been numerous meetings. There will be more scheduled. There will be public hearings in connection with any Planning Commission review of a plan of development for either the Foxwoods or the SugarHouse Casino site. 73 2/21/07 RULES - Bills 070006, 08 through And there will also be, as part of the CED legislative process, an opportunity for the public to be heard in connection with the City Council's consideration of the plan of development for these two casino sites. So I think it is important that the record reflect that not only is community input important, not only am I trying to argue for the opportunity to continue to have that input by demonstrating that we have a reasonable set of regulations through the CED process applicable to these -- to these two licensees, but I'm sure that we will continue to hear from the community, and that is their right, and I think that should inform the decision-making process with regard to the plan of development review.
Thank you. And I do appreciate your comments, Mr. Diaz. And the Mayor has indicated to me as well that he wants to have 74 2/21/07 RULES - Bills 070006, 08 through communities meetings. The only exception I would take as far as the City's Gaming Task Force, which, I think, did a good job (indiscernible) the fact that the selection committee, site selection committee made no recommendations nor did they disapprove any of the sites. (Applause.)
That, to 12 me, is (inaudible). 13 Thank you. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Madam President, I just wanted to make one reference to a response to a reference about my questioning the City Solicitor about a potential opinion to my colleague. 75 2/21/07 RULES - Bills 070006, 08 through In no way did I mean that if I sought an opinion that I would necessarily pay any attention to it. (Laughter.)
All right. 7 I was wondering what happened. I 8 thought it was a new Councilman Clarke 9 here. 10
Well, I do 11 believe that it is prudent to seek the 12 advice of counsel when you're in a 13 legal -- involved in a legal issue. So while I will seek the personally -- and I'm not sure if other Councilmembers or the Chair will seek that opinion. I'm not saying here today that I will abide by that.
But I think it's prudent to understand the nature of the legislation, what from the -- our lawyers' perspective is legal and not legal and then proceed appropriately. 76 2/21/07 RULES - Bills 070006, 08 through 2
And by no 3 means did I suggest -- want to suggest 4 or give anyone the thought that you 5 would automatically agree with the 6 Solicitor's opinion. I know that for a 7 fact. 8
Are 11 there any other questions from members 12 of the committee? 13 (No further questions.)
Gentlemen, thank you. CITY SOLICITOR DIAZ: Thank you.
I would ask Mr. McPherson to please call our next witness. MR. McPHERSON: Steve Szapor. (Witness comes forward.)
Good morning. Welcome. Please identify yourself for the record.and proceed with 77 2/21/07 RULES - Bills 070006, 08 through your testimony.
My name is Steve 4 Szapor. I'm President of the Innovation 5 Group. 6 The Innovation Group is a 7 private consulting firm, and our role in 8 this process was, we were one of the 9 consultants on the task force, and I'm 10 here today to provide a few comments on 11 our process and our Task Force Report. 12 I think from an overall 13 perspective, the City of Philadelphia has a special opportunity to have two casino entertainment facilities targeted in the City. Our forecasted gaming numbers out of these two facilities are significant. The numbers approximate $700 million annually on a stabilized basis, which would put the City in the arena of a major gaming destination. In addition, there's a variety of ancillary revenues that go along with that -- hotels revenues, food and 78 2/21/07 RULES - Bills 070006, 08 through beverage revenues, and things of that nature. The combination of access, location, and proximity to the City center and the downtown as well as the physical products that are being proposed to be built here should really combine to provide significant economic benefits to the City. And I think outlined in that Task Force Report were four specific economic benefits: The first one is job creation. You know, both direct and indirect jobs will be provided by these type of developments. Overall, the task force estimates that over 7,000 direct and indirect jobs, both through construction as well as ongoing operation, would be created. These are just not jobs that provide minimum wages but also are professional jobs and jobs that people can utilize to develop a career out of. Many people in the gaming industry today 79 2/21/07 RULES - Bills 070006, 08 through 2 started at the bottom level and worked 3 themselves to be top executives and at 4 top-level positions. 5 The other economic benefit is 6 tax relief to Pennsylvanians. The task 7 force estimated a 13 percent drop in 8 residents' wage taxes alone. 9 The third impact would be 10 economic and tourism development. As 11 you know, a portion of the gaming tax 12 receipts will go towards the 13 Pennsylvania Economic and Tourism Fund, estimated at $150 million a year. This is a significant amount of dollars, and for Philadelphia, some of these funds will be targeted to help pay for the expansion of the Convention Center and other promotional efforts. These types of efforts are critical to helping the City's tourism and convention business, and will allow Philadelphia to be competitive with other major cities. More and more research on 80 2/21/07 RULES - Bills 070006, 08 through 2 tourists and travelers show the 3 importance of entertainment and night 4 life in an overall destination 5 experience and in people's decisions to 6 visit a particular location. 7 Philadelphia needs to be able offer a 8 competitive nighttime entertainment 9 experience for conventioneers and 10 tourists alike. 11 And then, finally -- not 12 finally, but a fourth economic impact is 13 obviously the host fee that is paid directly to the City. We've heard testimony this morning about what that host fee will be, approximately to 17 $30 million annually, and the potential 18 uses that it could go for. 19 The facilities being proposed 20 will have the distinct advantage of operating in an environment whereby the local and regional population base has had significant exposure to a variety of gaming alternatives already. This should allow these facilities to ramp up 81 2/21/07 RULES - Bills 070006, 08 through 2 quickly and help ensure success. 3 One just needs to look at the 4 database of an Atlantic City casino or a 5 Delaware casino, and it becomes evident 6 that a significant portion of 7 Philadelphia residents and those of 8 surrounding counties have a propensity 9 to game already do so. These folks are 10 gamers that will now have a local 11 option, and it will allow them to keep 12 their expenditures in the State of 13 Pennsylvania.
And for once, Pennsylvania can attract residents from the neighboring states of New Jersey and Delaware, for example, that have benefitted from Pennsylvania residents spending their money in those states for almost 30 years. The task force also looked at a variety of social impacts. The task force spent considerable time and effort analyzing these potential social impact issues and costs from gaming being put 82 2/21/07 RULES - Bills 070006, 08 through into the City. For one, a poll conducted as part of the process noted that the majority of Philadelphians do not believe that gaming will be a detriment to the overall quality of life. While there have been several studies around the country conducted regarding crime, there does not appear to be a statistical link between the introduction of gaming in other big cities and an increase in crime rates. In fact, improving economic conditions that reduce unemployment and improve policing can lead to a decline in some rates. 9 percent of the population. However, casinos today have played an active role in dealing with 83 2/21/07 RULES - Bills 070006, 08 through 2 these types of issues. Through a 3 variety of training programs, they've 4 been able to help identify -- help 5 identify and deal with problem gaming. 6 They've implemented policies and 7 procedures to minimize them and are 8 setting aside funds by the State to fund 9 programs. 10 As previously noted, many 11 Philadelphians and the population in the 12 area have already been exposed to gaming 13 for many years, and it is likely that many of the problem in pathological gaming issues have already manifested themselves. In summary, casinos have been in Atlantic City and Delaware for many years and are now coming to Pennsylvania. Their impact from an economic intact perspective is widely known, and evidence in other jurisdictions supporting the positive benefits is overwhelming. Philadelphia should not be left 84 2/21/07 RULES - Bills 070006, 08 through 2 out. There is a unique opportunity to 3 bring more people into the City and for 4 them to spend more money and to enjoy 5 themselves. 6 Again, while there has been 7 some concern over potential crime and 8 social costs, I think we have to go back 9 and respond and look at the task force 10 study, which really noted that that 11 impact has not statistically been seen 12 in other jurisdictions. 13 This concludes my remarks in this regard. I appreciate the opportunity to provide them and would be open to answer any questions at this point in time.
Thank you very much. The Chair recognizes Councilman Kenney.
Thank you, Madam President. Excuse my voice. Councilman DiCicco had earlier raised some issues relative to job 85 2/21/07 RULES - Bills 070006, 08 through creation and potential job loss. I've heard a lot about job creation. And I'll tell you the truth: I'm conflicted. I'm torn between wanting the revenues that can do so many good things and deal ling with some of the fallout relative to neighborhood environment and also the jobs. In your analysis of the effect of job creation, both the construction industry and permanent jobs, did you also look at the impact of neighborhood businesses -- taverns, restaurants, retail like Ikea and Home Depot, and those other places? But more importantly, have you looked at the impact on trucking -- offloading and onloading of cargo ships -- and what impact that would have on the Port of Philadelphia? (Applause.)
And the reason I raise that is because of my knowledge of the port not only from what 86 2/21/07 RULES - Bills 070006, 08 through Frank raised relative to -- Councilman DiCicco raised relative to retail access by vehicle. Do we get to a point, because of the influx of automobiles there, that our trucking is slowed to the point that certain shipping companies may choose other ports because of the delays in accessing the facilities that we have in the southern end of Delaware Avenue? (Applause.)
And if I gain a job, which may be a good-paying job and has a future, moving up from a person who services slot machines to management, do I also run the risk of losing a job that's paying a sustaining wage to a family in South Philadelphia or in our region?
And I apologize 'cause I probably should have prefaced my remarks with the -- with the aspects of the task force that we were involved in. 87 2/21/07 RULES - Bills 070006, 08 through And we were involved in the estimating of the gaming revenue potential, and we were involved in evaluating some of the social-impact costs as well as providing some qualitative insight into the pros and cons of locations from the gaming generation perspective. The economic impacts from a job creation and things of that nature were done by a separate consulting firm.
Now, the separate group, or the separate consultant, did they do this analysis as to what potential impact there may be or may not be relative to congestion that's caused because -- obviously, the casinos want people to come. People are going to come by two methods probably. They're going to come by car or they're going to come by bus, and maybe some people from the neighborhood will walk over. That impact of that congestion, 88 2/21/07 RULES - Bills 070006, 08 through while we're trying to figure out how we can mitigate it through ramp construction and all of the other kind of things we're going to do to mitigate to get people directly into the sites, that doesn't happen overnight, and there may be a period of three to five years or more before we have that construction of those ramps and other mitigation factors. I need to know from my own perspective the impact that that time period has on our container traffic, on our truck traffic, and on those jobs that I don't want to trade off on. I mean, is there anything in that report that indicates that?
You know, in the full 375-page report, I'm not sure what's in -- again, what's in that. I can't answer for that other consulting firm. I apologize.
All right. But it's available for us to at least 89 2/21/07 RULES - Bills 070006, 08 through look at?
I think they 6 described their methodology and what -- 7 and whether they took that into 8 consideration or not. 9
Okay, but I 10 -- 'cause I do think, you know, we want 11 to try to do our best by everyone 12 here -- neighbors, residents, 13 businesses, you know, construction industry, new casino workers. We want to try to make everybody as happy as possible. But in order to make that decision, I really got to know -- or we need to know -- what impact in the short term and long term it may have on other important industries in Philadelphia like our movement of cargo.
Thank 90 2/21/07 RULES - Bills 070006, 08 through you. The Chair recognizes Councilman Savage.
Good 6 morning. 7 Could you comment on how much 8 revenue is going to be brought in out of 9 state from tourism and money? 10
Yeah. And that is 11 in the report. 12 I think the general range is 13 about 50 percent of the gaming revenues were going to be from outside the state. In fact, the report showed that about 67 percent of all wagering would be non-Philadelphians. So there is a significant amount of wagering and revenues that will be brought in from outside of the immediate area.
Thank you. Any other questions from 91 2/21/07 RULES - Bills 070006, 08 through members of the committee of this witness? The Chair recognizes Councilwoman Brown.
7 Thank you, Madam President. 8 For my own information, tell us 9 a little bit about Innovation Group. 10 And have you provided the kind of 11 insight and evaluation in other 12 municipalities that you just shared with 13 us today for Philadelphia County?
Yes. We're a -- we're a private consulting firm. We've been around for -- for over 12 years. We do a variety of work for both gaming operators as well as, you know, government entities. We've worked in situations both here in the U.S., in towns out in California, and we've actually worked for governments, state governments, and, you know, foreign governments in terms of evaluating their aspect of, you know, 92 2/21/07 RULES - Bills 070006, 08 through what is the potential gaming revenues and income from -- from gaming from that perspective.
6 Ask so your focus is on the benefits or 7 liabilities of the industry separate 8 from community input, community opinion, 9 community participation. 10
12 Okay. Thank you for your testimony. 13 Thank you, Madam President. (Applause.)
Thank you, Madam Chair. Good morning. Going back to Councilman Kenney's questions when, the task force looked at the issue of gaming and the possible -- did they look at possible impacts to the port activities and other retail establishments along the corridor 93 2/21/07 RULES - Bills 070006, 08 through of Delaware Avenue Columbus Boulevard.
Again, as I 4 mentioned I should have prefaced my 5 comments. There was a separate 6 consulting firm that dealt with those 7 economic impact and those potential 8 impacts. 9
Were those 10 recommendations given eventually or 11 turned over to the task force for 12 consideration? 13
Do you know anything about the site selection committee of the Gaming Task Force?
Do you know who sat on that task force, and do you know whether or not they made any recommendations for any of the sites?
I believe the input we provided was sort of -- was on the advantages and the challenges of the 94 2/21/07 RULES - Bills 070006, 08 through various sites that were considered at that time. Whether they -- whether they took that information and actually made specific recommendations, I'm not sure.
So to your 7 knowledge, you don't know if they 8 rejected any of the sites either? 9
'Cause 11 it's my understanding that there -- they 12 were silent on the issue. 13 The site selection committee of the Philadelphia Gaming Task Force whose job I thought it was to make recommendations for sites, any of the five sites that were in contention, my understanding is they were silent. There was no recommendation for or no 20 recommendation against.
I believe the report listed each site and the pros and cons of each. I'm not sure they made specific recommendations.
I will 95 2/21/07 RULES - Bills 070006, 08 through take that as they did not make a recommendation either way. I'm wondering why we had a site selection committee in the first place, but thank you. Thank you. (Applause.)
Thank 10 you. 11 Any other questions from 12 members of the committee? 13 (No further questions.)
Thank you very much, sir. I would also like the record to reflect that the committee has been joined by Councilman O'Neill and Councilwoman Reynolds-Brown. I would ask Mr. McPherson to please call the next witness. MR. McPHERSON: The next witnesses are SugarHouse representatives Bob Sheldon, Dan Keating, Melanie Shaw, Greg Carlin. 96 2/21/07 RULES - Bills 070006, 08 through (Witnesses come forward.)
7 Please identify yourself for the record 8 and proceed with your testimony. 9
My name is Bob 10 Sheldon and I'm the president of 11 SugarHouse Casino. 12 Council President Verna, 13 Councilman Clarke and the other members of the Rules Committee, good morning.
My name is Bob Sheldon, President the SugarHouse Casino. I have with me: Dan Keating, one of the owners; and Melanie Shaw, who is helping lead our community relations efforts and diversity efforts; as well as Greg Carlin, our chief executive officer. 97 2/21/07 RULES - Bills 070006, 08 through 2
Seated behind us 5 are: Joe Martin, who is our director of 6 procurement; Joanne Weber, in charge of 7 human resources; and Debra Marchesi, who 8 will be our chief financial officer; as 9 well as John Donnelley, our counsel is 10 here as well, and he has a deep 11 background in gaming issues. 12 Thank you very much for 13 allowing us to testify today. I know the specific question before the committee is the package of bills that would change the zoning process for our site and delay the beginning of our construction and our hiring, but I would like to, if I may, take a few moments to step back and explain to you why we picked the site that we did what kind of company we are. We're extremely proud of the fact that our proposal was rated as the best of five city proposals by the State 98 2/21/07 RULES - Bills 070006, 08 through Gaming Control Board, an entity which has three of its seven members, including its chair, from Philadelphia. We believe we were rated as such because of the totality of our proposal -- our facility, our location, and our team. SugarHouse Casino will be owned and operated by HSP Gaming, a limited partnership. Our ownership and management have developed, managed, built, financed, and designed some of North America's most successful casinos and urban mixed-use projects. Locally, members of our ownership group have developed the Four Seasons Hotel, One and Two Logan Square, the Pennsylvania Convention Center, Lincoln Financial Field, and the Penn's Landing Hyatt. With our local partners, we have deep ties and a firm commitment to the Greater Philadelphia community. Our site, situated on acres along the Delaware River, is currently 99 2/21/07 RULES - Bills 070006, 08 through 13 neglected and abandoned. It already has a zoning designation that permits our use. Our neighbors are primarily industrial and entertainment, and we will have ample free parking for our employees and customers to keep cars off neighboring residential streets. There is good visibility of our site, both from Interstate 95 as well as the Ben Franklin Bridge. And, importantly, access to our site is good. As you may recall the Mayor's Philadelphia Gaming Advisory Task Force found that the north central Delaware sites where SugarHouse is has excellent highway access, and local street congestion would be minimized. The closest major intersection, the Girard Avenue interchange, is already scheduled to be expanded by the Commonwealth, ensuring that traffic will not flow through surrounding neighborhoods. PennDOT has also developed a plan to minimize congestion 100 2/21/07 RULES - Bills 070006, 08 through 2 while the interchange is being built. 3 This was important to us because we 4 don't want traffic congestion anymore 5 than our neighbors do because it hurts 6 our business. 7 It's for all of these reasons 8 and many more that we selected the site. 9 As you know, the way the 10 Pennsylvania Gaming Act is written, 11 applicants must control their site when 12 they apply for the license. Our group 13 analyzed more than a dozen sites over a two-year period, including many of the sites examined in the Mayor's Gaming Advisory Task Force Report. We could have selected another site; we selected this one because it has all of the characteristics that will make for a successful business. The strengths of the site are also why, when the State Supreme Court struck down the preemption clause on zoning issues, we were less concerned about that than others because our site 101 2/21/07 RULES - Bills 070006, 08 through 2 did not have some of the same problems 3 that others did. 4 When fully built out, the 5 SugarHouse Casino will be an exciting 6 $550 million casino and entertainment 7 project. The first full phase of 8 development will include space for 3,000 9 slot machines, dining, over 3,000 free 10 parking-garage spaces, and a 6,000 11 square foot multi-use events center.
12 Future expansions will include 13 development of a new 500-room hotel, expanded dining options, and a spasm. And for the first time in a generation for residents of Fishtown, the Delaware River will no longer be something they can see but not approach. Our proposal opens the waterfront to our neighbors with a public and accessible riverfront promenade, which will create a peaceful outdoor haven for visitors and locals. In crafting this waterfront promenade, we've listened closely to the 102 2/21/07 RULES - Bills 070006, 08 through residents of Fishtown, even adjusting our original plans because we heard their desire for great public space along the water. We believe SugarHouse fits perfectly within the City's desire to revitalize the entire waterfront and make it more accessible. In fact, the design was specifically crafted to mesh with that vision. As much as we believe that this project will benefit our company will also benefit our company, we also believe it will benefit our immediate neighborhood and the larger Philadelphia community. According to the Task Force Report, gaming represents a once-in-a-lifetime economic development opportunity for the City. For starters, the development of the two new casinos will have a larger economic impact on the City and its economy than anything in over 50 103 2/21/07 RULES - Bills 070006, 08 through 2 years. 2 billion in gaming 5 taxes over the first five years of 6 operation, which will fund tax-wage 7 reductions for all who live and work in 8 Philadelphia; 9 - $17 million in host fees 10 payable to Philadelphia, 5 million of 11 which will go directly to the school 12 system; 13 - 7 to $8 million annually in additional local taxes; - the expansion of the Convention Center, which will create additional jobs and additional tourism revenues; - and the creation of an estimated 1100 permanent and high-quality jobs at an estimated average compensation of $40,000, including benefits. We're committed to hiring locally and contracting locally. In the 104 2/21/07 RULES - Bills 070006, 08 through 2 other gaming properties our majority 3 owners have, they've established an 4 exemplary record of hiring locally and 5 using local companies and contractors 6 and suppliers. 7 When we held jobs forums in 8 Fishtown earlier this year, more than 9 300 people came, so we know there's a 10 desire for jobs among our immediate 11 neighbors. 12 Furthermore, SugarHouse Casino 13 is dedicated to diversity in hiring, procurement, and contracting. As part of our application to the Casino Gaming Control Board, we submitted a detailed diversity plan, which we will be expected to live up to. This is not an empty commitment, as evidenced by the makeup of our senior management team. Other local businesses will benefit from the operations of SugarHouse as well. In addition to the direct jobs SugarHouse creates, we expect it to create an additional 2,000 105 2/21/07 RULES - Bills 070006, 08 through 2 new retail and hospitality jobs outside 3 the casino and another 2600 other 4 spin-off jobs in the service industries. 5 We're ready to go, and we 6 believe we're on pace to get the project 7 started as early as this fall. 8 Before I close, though, I want 9 to address two factually-false 10 statements that some have been making. 11 The first is the claim that 12 crime will increase in areas surrounding 13 the SugarHouse. According to the Mayor's Task Force Report, crime rates in comparable cities revealed no 16 discernible correlation between casinos and crime. The fact -- in fact, the task force study suggests that crime rates have, for the most part, declined during the period analyzed. )
But more to the point, let me make it clear that if there is an increase in crime around our facility, we won't be successful as a 106 2/21/07 RULES - Bills 070006, 08 through business. We want people to come to SugarHouse, enjoy our restaurants, and play our slots. If people are afraid to do so, we lose business. Its the nature of our business and it is in our interest to make sure crime does not go up. The second factually-false statement I have heard some say is that there was not ample time for the community to comment on our proposal, the implication being that we are trying to run roughshod over our neighbors. I cannot address what other applicants for gaming licenses did, but I can state flatly that for SugarHouse, we meet repeatedly with members of the community and have constantly sought to work with them. In addition to the two days of public forum hosted by the Pennsylvania Gaming Control Board at Drexel University, we held at least ten public meetings, forums, and roundtable 107 2/21/07 RULES - Bills 070006, 08 through 2 discussions in the community before our 3 license was awarded. 4 We met with leaders of all 5 riverward community groups: The board 6 of the New Kensington Community 7 Development Council, the Board of 8 Fishtown Neighbors, and had multiple 9 meeting with the North Delaware Unity 10 Coalition. 11 we also participated in open 12 meetings in the auditorium of Adaire 13 Elementary, at a Port Richmond Neighbors Association Forum on gaming, and two general membership meetings of the Northern Liberties Neighbors Association. We spoke at a gaming roundtable sponsored by the Fishtown Spirt, and hosted a walking tour of Fishtown. These public meetings were all publicized and well attended and did not include the dozens of private meetings we had with other community leaders or the jobs forum. 108 2/21/07 RULES - Bills 070006, 08 through 2 There were also community 3 meetings in every Council District as 4 part of the Philadelphia Gaming Advisory 5 Task Force. 6 We continue to be committed to 7 working with our neighbors to strengthen 8 our immediate surrounding areas. It's 9 one of the reasons we've committed a 10 minimum of a million dollars annually to 11 a Special Services District to be 12 controlled at the sole discretion of the 13 community to keep the area clean, well maintained, and safe. In closing, let me state we're ready to begin construction. We're ready to put a thousand people to work, building our facility over the next few months. We're ready to pay tens of millions of dollars in taxable wages over the next year. We're anxious to begin operations that will mean thousands of new jobs and millions of dollars of new tax revenue to the City. These bills would delay all of 109 2/21/07 RULES - Bills 070006, 08 through 2 that. We believe that they're bad for 3 us and for the entire City of 4 Philadelphia, and I hope you don't 5 support them. 6 Thank you very much. 7
Thank you, Madam President. Sir, you had gone through a list of meetings and interfaces that you had with the community over the past number of months. Were you ever at any point in time close to a deal, so to speak, or an arrangement or an agreement with people in that community? UNIDENTIFIED SPEAKER: Councilman, we've actually provided a draft of a community-benefits agreement that -- 110 2/21/07 RULES - Bills 070006, 08 through 2
I'm sorry. Greg 5 Carlin. I'm the CEO of SugarHouse. 6 We've actually provided a draft 7 of a community-benefits agreement to the 8 North Delaware Avenue Unity Coalition, I 9 believe, over a month ago. 10
I'm sorry. 11 What groups does that Unity Coalition 12 represent, if you know? 13
There's eight groups in that group. I -- I don't have all of them off the top of my head.
And how 111 2/21/07 RULES - Bills 070006, 08 through many people in that coalition were involved in the casting of this potential or had input in this potential benefits agreement?
Well, we had 7 several meetings with that group, and I 8 recall at least ten people from each of 9 the -- you know, ten people in 10 attendance that were representing that 11 coalition. 12
And they 13 represented the leadership of those organizations, or just members?
My understanding is they represented they leadership of those -- those organizations.
Okay. And please proceed with what happened with them.
We provided -- you know, based on discussions we've had, we provided a draft of a community-benefits agreement. You know, we support the concept of special services district 112 2/21/07 RULES - Bills 070006, 08 through creation. Unfortunately, the -- this group has placed a moratorium on meeting with us, and so they have not responded to our proposal.
I -- I really -- I 11 really couldn't -- sir, I really 12 couldn't tell you, sir. 13 You know, we -- you know, we think it's unfortunate, and we really hope the moratorium is lifted soon and that we can continue our dialogue with them.
Now, certainly, there's a number of people here today who are going to testify, and I'm sure that they will characterize their position as they see it to be. Could you characterize for us your opinion on how close that community-benefits agreement was. 113 2/21/07 RULES - Bills 070006, 08 through 2
Well, you know, we're certain -- we've negotiated in good faith with the community, and we're certainly committed to providing this money and setting up a Special Services District. I really can't comment on the other side as to what they're --
No, no, no. 11 I'm not asking you to suppose what they 12 think now. 13
I'm just asking you, in your opinion, did you feel that you were in a position to have the sign-on-the-dotted-line kind of thing?
Well, again, we provided the drafting, you know, like in any agreement like this, there's normally negotiations back and forth between the parties, and we just haven't had any response from our -- from what we've submitted. 114 2/21/07 RULES - Bills 070006, 08 through 2
Could you just kind of delineate for us what some of those community benefits draft language is.
Well, I think the 7 primary feature was a -- I don't have a 8 copy with me. 9
But I can 11 certainly provide Council with copies of 12 it. 13
Our counsel's here; we'd be happy to do that. But the primary feature was funding of a Special Services District that would, you know, fund at a minimum of a million dollars per year for really the local community to decide, you know, based on elections, you know, how that 115 2/21/07 RULES - Bills 070006, 08 through money should be spent.
Is there 7 anything -- I'm sorry. You look like 8 you want to add something. 9
I -- there were 10 other issues about having open 11 communications to -- in advance of job 12 opportunities, working with the local 13 community to direct training opportunities, keeping as much open communication there so they would have knowledge of everything that we were doing as far as opportunities and as well as local businesses.
And work jointly on things like traffic mitigation and those kinds of things. UNIDENTIFIED SPEAKER: But just as importantly is that --
I'm sorry. You have to identify yourself. 116 2/21/07 RULES - Bills 070006, 08 through 2
I'm sorry. Melanie Shaw. An important part of that is that the board of that was going to be controlled by the community with no 7 representation from SugarHouse. 8
Okay. Are 9 there -- I don't know whether or not we 10 have on the schedule today anyone 11 testifying on behalf of Foxwoods. 12
I would appreciate, when they get to the table, that they also talk about whatever interaction or whatever discussion they've had with the communities surrounding their particular facility. 'Cause, again, Councilman DiCicco's worked very diligently through the course of this whole really difficult situation, and it's a 117 2/21/07 RULES - Bills 070006, 08 through difficult situation for everybody 'cause it's a new thing for you us. And I frankly am very upset with the way in which the legislature -- and it's not your fault -- handed us this -- or handed off to us this hot potato, you know, with very little ability on our part to legislate, with the exception of what we're dealing with now, to legislate any of this. I mean, none of us here at this table voted on Act 71. None of us ever voted -- (Applause.)
None of us at this table ever voted to preempt the zoning code. I mean, there were people who were represented in that area that voted against the zoning -- to preempt zoning code at least four times. And I understand and I empathize with my colleague who is now dealing two of these facilities in his district, and I know Councilman Clarke 118 2/21/07 RULES - Bills 070006, 08 through has his district touching that also. We're doing our best to protect people when the legislature basically just kind of jammed it to us. And despite all of the issues relative to job creation and revenue, we have serious problems that we have to deal with, and we have handcuffs on because of what the legislature has done to us. But -- (Applause.)
And I can only speak to what I have heard, through the Councilman's efforts and through people in the community, that the real problem here was not necessarily your proposal and your activity relative to the neighbors, but Foxwoods was perhaps the worst site and has had the worst problems in dealing with resolving their issues. So I'm -- you know, I'm not suggesting that we split this up, but I 119 2/21/07 RULES - Bills 070006, 08 through mean, if you guys are -- and we're going to hear from the community, but if you were that close to a benefits agreement with the neighbors, I mean -- and most of the bulk of the complaint comes about as a result of Foxwoods' location and their congestion issues and their impact on the community, I mean I think we really have to seriously look at that. So anybody else who wants to testify when they come up and give their version of what they think this is or what their interaction with you was, certainly I'll accept on good faith their views. But it seems like you've kind of done your homework in dealing with the community, and I mean, we are where we are now, and we'll see how it turns out, but I just wanted to say that.
And we have -- and despite -- you know, we talked about a lot of other meetings that may have been one-on-one. For instance, we've 120 2/21/07 RULES - Bills 070006, 08 through gone out to the Fishtown community, walked door to door, and tried to touch as many people as we can and hear their views and --
Have you 7 met with other elected officials other 8 than Councilmembers? 9
And I just wanted -- one other point. I've been listening to some of the comments made earlier. I mean, you know, we -- our original plan we brought to the community back in March of 2006, and there was some -- people had some criticism, and good criticism of our plan, and, you know, we went back to the drawing board and we changed some things. 121 2/21/07 RULES - Bills 070006, 08 through We made our open space bigger, more accessible to the community. We changed our entrance, bringing it closer to Delaware Avenue. And these were all suggestions we got in community meetings. So I really do think that we -- we've tried to address community concerns and work with the community and to be an open listener.
If you 13 could just indulge me for a second, Council President. I have one issue relative to riparian rights that's -- it's a very kind of a arcane type of legal issues relative to the State's control over riverbed and areas that used to be riverbed. And you have some, I believe, some riparian-rights issues of your own. Could you explain what that is and how that impacts you.
Dan, do you want to take that? 122 2/21/07 RULES - Bills 070006, 08 through 2
Councilman, I'm Dan Keating. I'm the chairman of Keating Building Corporation, and we've been involved in this process since day one -- actually, since 2003. And there are lawyers and other qualified people to talk about the legality of riparian rights. But from a practical standpoint as it relates to SugarHouse, it effectively cuts the site in half, so the end result of that from our end would be that our building structure would be higher and thinner. It would take the back portion of the property, the water side, and cut it off from public use, which would be a grave mistake and something I don't think any other developer along the Delaware has encountered.
Will the lack of acquisition of riparian rights cause some of the amenities and givebacks, so to speak, that you've 123 2/21/07 RULES - Bills 070006, 08 through given to the community or at least negotiated, would that change access to the river? Would it change how the -- the footprint of the building, obviously you've said the footprint of the building is affected. How does that affect the visual and physical amenities of the property?
Well, okay. Just 11 add to that, as Bob Sheldon referred 12 earlier, we went through an exhaustive 13 study of different sites. We 14 actually took a casino model and 15 developed it on 11 of those 15 sites. The SugarHouse site was not chosen by accident, it wasn't a marriage of convenience. It's acres of land 19 with two lights at Shackamaxon and 20 Frankford Avenue. 21 If you were to take that 22 22 acres and cut it in half, the part that would be developed is the part closest to Delaware Avenue. The part that would not be developed would be the ten acres 124 2/21/07 RULES - Bills 070006, 08 through back by the river. Access to that and all of the promenades that have been planned and worked through with the community groups would disappear.
All right. 10 Thank you, Madam President. 11 I'm sorry for the time. 12
13 You're welcome. The Chair recognizes Councilwoman Brown.
Thank you. Good morning -- good afternoon. PANEL: Good afternoon.
For the record, could you please speak to the outcome or the summary of where you are with regards to MBE WBE participation? Not knowing where we will end up, what were the discussions 125 2/21/07 RULES - Bills 070006, 08 through along the way?
Councilwoman, let me 4 address that for you. 5 Let me say that first and 6 foremost, this team was the only team, 7 prior to being awarded the notification 8 of license, to offer procurement 9 workshops in the community that reached 10 out to the minority and the women 11 business community as well as the local 12 business community. 13 Our diversity plan speaks specifically to that, and we were cited by the Gaming Commission as having the best diversity plan. We have also, by representation of the gentleman here today, Mr. Martin that will act as our procurement person, diversity will come under him. So from a structural standpoint, we already have figured out where we're going to put diversity and the importance that it will play. That's separate and apart from what will 126 2/21/07 RULES - Bills 070006, 08 through happen in terms of outreach to diverse communities for jobs as well.
We've also worked 7 with a number of community organizations 8 to talk about what type of training can 9 be put in place, the type of financial 10 support we will offer to help facilitate 11 that training, and to do a balance 12 between the local neighborhood and the 13 City of Philadelphia as well.
I think it's also important to note that when we did the jobs forum, that in addition to the fact that it was over 400 people there, we had families there, where it was a grandmother, a mother and a father and a son or a daughter that were all looking for opportunities. And we have had -- continue to have communications from them asking status of where we are in 127 2/21/07 RULES - Bills 070006, 08 through hiring and when we will start to hire.
4 Has there been any assessment in the 5 review of those perspective employees 6 around what percentage came from the 7 immediate community where the prospects 8 of these casinos may be and those who 9 came from outside the community 10 boundaries, whatever they are? 11
The zip codes 12 suggest that they come from all over the 13 City.
But the majority of the attendees at the career forum came from the immediate community, and that was intentional on our part --
-- as a good-faith effort to show that, first and foremost, we want to make sure that we reach out to the neighbors to let them know that 128 2/21/07 RULES - Bills 070006, 08 through we want to be a partner with them.
4 Mm-hmm. Now, as much as there is 5 sentiment that we should become more 6 regional in our approach to matters like 7 this, there is sentiment amongst this 8 legislative body that first 9 opportunities should go first to 10 Philadelphia residents. 11 What level of discussion or 12 commitment was spoken to that particular 13 issue?
Okay. And so can one define that in terms of numbers or percentage? Is it 75 percent Philadelphia --
We're actually working on an agreement with the City right now, and those numbers will be addressed in a development agreement. We haven't finalized the 129 2/21/07 RULES - Bills 070006, 08 through agreement yet but, you know, we certainly expect to have a high number in there.
6 Okay, okay, but -- I'll accept that, 7 although that doesn't completely answer 8 my question. 9 One other question. Uh... 10
Well, I did want 11 to make one other point. 12 I mean, I think -- I really do 13 think that actions speak louder than words. And to date, if you look at the firms that we've hired to do things for SugarHouse -- and there's been a lot of different areas we've needed to hire firms -- we've hired, I think, nine or ten, you know, minority-owned or women-owned businesses, you know, across all facets of our operations. So, you know, we -- to date, I think we --
From the exec. to the non-skill area. 130 2/21/07 RULES - Bills 070006, 08 through 2
5 Okay, okay. 6 I'm so sorry, Madam President. 7 I had another question that just escaped 8 me. 9 Thank you for your testimony. 10
Are 12 there any other questions from members 13 of the committee?
Thank you. The Chair recognizes Councilman Clarke.
Thank you, Madam President. 131 2/21/07 RULES - Bills 070006, 08 through One quick question just for clarity purposes. The million dollars that has been offered for the community as a part of the community-benefits agreement, is it understood that that million dollars will not have to pay for police and traffic support that is traditionally the responsibility of the government?
Correct. Again, 12 this money is for the -- for the 13 community group to decide how it gets spent. There's no strings attached that says, Hey, a certain percentage needs to be spent on police or on traffic.
It's really the community's decision as to where that money gets spent.
Okay. And I thought I heard earlier testimony about traffic -- traffic control, and I just wondered if --
No, that -- we're 132 2/21/07 RULES - Bills 070006, 08 through talking about having a dialogue with the community, an ongoing with the community on issues like that.
That 6 million dollars has no bearing on any 7 ancillary support for the operations and 8 -- 9
Thank you. The Chair recognizes Councilman DiCicco.
Thank you, Madam Chair. Good morning. Mr. Sheldon, I do agree with your testimony; SugarHouse has had numerous meetings with the folks in the northern end of my district as well as Councilman Clarke's district. Has there been any change to your plan since the close of the public 133 2/21/07 RULES - Bills 070006, 08 through comment period in June?
Well, as I 7 mentioned earlier, we met with -- you 8 know, we met with community groups in 9 March and showed them our original 10 plans, and we got a lot of feedback. 11 And subsequent to that, we did 12 make some changes, but, again, we had 13 public hearings before the Gaming Board, where we presented our new plan, and our website has all of our latest plans and pictures for people to review.
So there may have -- there were some changes that had occurred between, I think it was, June 6th or whatever was the public comment period and this --
I -- I -- Councilman, I can't recall the exact dates we introduced our new plans, but I can certainly get back to you on that. 134 2/21/07 RULES - Bills 070006, 08 through 2
6 You're welcome. 7 Are there any other questions 8 or comments? 9 The Chair recognizes 10 Councilwoman Brown. 11
12 Thank you, Madam President. 13 Additional questions around the board, the community board. Speak to agreements or potential agreements on the composition of that board. And was there discussion given to -- ultimately, you have -- someone has to be there to execute or implement those decisions rendered by the board. Speak to that, if you would.
Well, again, it's been our position that, you know, we want to provide this money to the community and let them decide who should 135 2/21/07 RULES - Bills 070006, 08 through be on the board and how all their plans should be implemented. I mean, we're certainly available to assist and to consult, but we really -- you know, the plans was to really make that the community's responsibility.
10 Okay. And then, finally, past 11 experience hopefully always informs how 12 you do things differently going forward. 13 Given SugarHouse's experience in other municipalities, have there been, we'll call this, "opportunities" where you had to figure out a way to keep the community whole while you moved to make the goals of SugarHouse real?
Well, we operate -- you know, the principals of SugarHouse currently operate in Niagara 136 2/21/07 RULES - Bills 070006, 08 through Falls, and, you know, I think we have a very good relationship with the community up there, and we've been active, good neighbors and active community members. And, you know, you could certainly check that out for yourself. I -- you know, I stand by our record up there. I'm not quite sure if that answers your question, but...
Clarity would be helpful. Examples. I mean, "good" means what? Define that for me.
Well, you know, we make a lot of contributions to local charities, and, you know, our employees volunteer to do different things in the community, whether it's, you know, cleanup days or that kind of stuff. And, you know, I think the City of Niagara Falls had a positive experience based on -- you know, based 137 2/21/07 RULES - Bills 070006, 08 through on our -- from our operation up there.
4 Okay. Did you want to add, 5 Mr. President, on this question? 6
Well, the 11 majority of my experience was in Nevada 12 in Las Vegas and Reno, and those are 13 communities that are really built around the tourism industry.
And so tourism, casinos, hospitality all work closely with the community for -- for -- in any number of ways. So -- but it's always been that way there, so it's not exactly a relative example, I would suppose.
Okay, then. Thank you all for your 138 2/21/07 RULES - Bills 070006, 08 through testimony. Thank you, Madam President.
5 You're welcome. 6 Any other questions from 7 members of the committee? 8 (No further questions.) 9
Thank you. I would ask Mr. McPherson to call our next witnesses. MR. McPHERSON: Representatives from Foxwoods: Jeff Rottwitt and William Schwartz. (Witnesses come forward.)
We're still trying to conduct the hearing, so those of you who are having conversation, may I ask that you do so in the corridor. 139 2/21/07 RULES - Bills 070006, 08 through Thank you. Good afternoon. Welcome.
6 Please identify yourself for the record 7 and proceed with your testimony. 8
Madam President, 9 my name is Jeff Rottwitt. Members of 10 the Rules Committee and Councilman 11 DiCicco, thank you for having us here. 12 We're here to focus on the 13 bills that are before you and not attempt to revisit the issues that were thoroughly addressed by the Gaming Control Board in terms of the award of the license. We also will try to not usurp too much of your time to repeat some of the very thorough and thoughtful testimony that preceded us this morning. I'll turn it over to my partner William Schwartz.
May it please the committee, my name is William G. 140 2/21/07 RULES - Bills 070006, 08 through Schwartz, and I am here with my partner, Jeffrey B. Rottwitt. We represent Philadelphia Entertainment Developer Partners, LP, a successful licensee for a Category II gaming license under the State Gaming Act and owner of 1499 South Christopher Columbus Boulevard. We are here today to offer testimony in opposition to the package of ordinances, except for 070013 before this committee relating to the rezoning of our site at 1499 South Christopher Columbus Boulevard as well as the proposed changes which are detrimental to and which limit and exclude gaming from the Philadelphia Code. This package of anti-gaming measures is clearly an attempt to halt the development of casinos in Philadelphia and, in turn, impede the much-needed creation of jobs as well as wage and property tax relief and increased tax revenues that the advent of gaming to the Commonwealth of 141 2/21/07 RULES - Bills 070006, 08 through 2 Pennsylvania will bring to the City of 3 Philadelphia. 4 More importantly, these bills 5 have not been subject to proper planning 6 and are poorly thought out, or not 7 thought out at all. 8 Further, most legal scholars 9 would interpret these ordinances as 10 violating State law and violating the 11 Commonwealth of Pennsylvania, as the 12 Pennsylvania Supreme Court has, on 13 numerous occasions, stated that unjustly discriminatory, arbitrary, unreasonable, and confiscatory zoning laws are invalid. Further, the State legislature has made it clear that the Pennsylvania Gaming Control Board has sole and general jurisdiction over the siting of licensed gaming facilities in the Commonwealth. Clearly, the rezoning of what is known as "the Foxwoods Parcel" from a commercial designation, which is in 142 2/21/07 RULES - Bills 070006, 08 through 2 character with the surrounding retail 3 and commercial properties to a very 4 restrictive -- 5 (Jeers.) 6
-- to a very 7 restrictive residential use is void of 8 the careful planning and thought that 9 went into the current Commercial 10 Entertainment District originally 11 planned for this site and which is 12 legally required for all zoning changes. 13 The R-10A zoning designation will keep this site undeveloped and make it, for all intents and purposes, undevelopable. Ordinance No. 070009 along with the other package of bills, if passed, will limit one of the City's most scarce resources, waterfront property, to a zoning classification that will continue to hinder development. The Commercial Entertainment District, which was envisioned for this site, went through extensive planning 143 2/21/07 RULES - Bills 070006, 08 through and has safeguards to ensure public access to the river. Obviously, a change to R-10A would not guarantee such access, and most likely, such access would be inconceivable in any R-10A development. This would not allow the development of the waterfront as envisioned by the current administration and, I guess, by this Council. In addition to the lack of utility that this zoning classification will provide, it will cost the City millions of dollars in lost tax revenues. Gaming revenues aside -- although projected in the millions -- limiting this land to single-family homes rather than high revenue- generating commercial projects envisioned under the current commercial zoning -- it's currently zoned C-3 -- and soon-to-be-proposed CED zoning will deprive the City of millions of dollars in property, wage, business, privilege, 144 2/21/07 RULES - Bills 070006, 08 through 2 gross repeats, use and occupancy, and 3 numerous other taxes and benefits. 4 Add to the increased revenues 5 guaranteed by the advent of gaming, and 6 it is clear that this property should be 7 a cash cow for the City's General Fund 8 and allow for Council and the 9 Administration to appropriate additional 10 funds for education, police and fire, 11 and our other city services. 12 In addition to the potential 13 tax revenues, there are also the thousands of permanent jobs and thousands of building trades and construction jobs, which the current two casino developments will generation. This attempt at change in zoning is invalid because it constitutes special legislation as well as spot zoning. The ordinances would seek to make gaming a regulated use subject to the Zoning Board of Adjustment's approval and/or seeks to prohibit gaming entirely or also subject to challenge 145 2/21/07 RULES - Bills 070006, 08 through 2 that casino use is preempted by the 3 State and would no doubt considered by 4 any court to be a de facto and de jure 5 exclusionary zoning, which the Supreme 6 Court has said violates both the United 7 States Constitution and the Pennsylvania 8 Constitution. 9 If such a decision is found by 10 the courts, then, as you know, gaming 11 would be allowed anywhere in the City. 12 CED was properly crafted 13 through a process to ensure that the City did not usurp State authority on the siting of casinos. The R-10A and the other proposed ordinances, except 070013, are examples of private-interests, shoot-from-the-hip legislation and should be treated as such. We ask that the committee vote to oppose Bill No.'s 0706 [sic] through 07012 [sic]. Thank you.
146 2/21/07 RULES - Bills 070006, 08 through You're welcome. The Chair recognizes Councilman Greenlee.
Good 6 afternoon, everyone. 7 With all due respect, you made 8 a much different presentation than 9 SugarHouse. You didn't address -- 10 are -- have there been any -- and I 11 understand your dispute with the 12 legislation, I understand that. 13 But have there been any attempts or any conversations with the general community down around you? And if so, what have they been?
We have been very diligent in our attempt to engage in a dialogue. Unfortunately and very regrettably, we have had little success with the -- (Applause.) 147 2/21/07 RULES - Bills 070006, 08 through 2
We have met with representatives of the major community groups through the good offices of Councilman DiCicco. We met with a number of them early on. We have had countless living room meetings and coffees with as many people who would meet with us as possible. But the -- as the representatives of SugarHouse said, the major groups have essentially boycotted efforts to have a substantive dialogue.
Okay. I think in fairness, I think there was the indication that there was a lot of progress up around the SugarHouse. Was there -- would you define any progress being made with the residents around your site?
Other than -- other than I believe that we had successful living room meetings with those who were in attendance in terms of cutting to the chase and having the bare 148 2/21/07 RULES - Bills 070006, 08 through bones for a Special Services District, no, we have -- we have really nothing tangible in that regard. We have said publicly to the City and to the Gaming Board that we will follow the paradigm, I think, that was created in South Philadelphia for the Sports District to create a Special Services District. We've had conversations with the City Solicitor's Office about the contours of that, and the Administration has suggested that they may be more interested themselves in defining which groups are represented and how the governance of that district would be finalized. And we are totally supportive of, quite frankly, any outcome that is embraced by the community groups and by the City.
Thank you. Just one more question, if I 149 2/21/07 RULES - Bills 070006, 08 through could. And I know it's a big question whenever your site is brought up. Traffic congestion. What -- I know there are some plans, you know. Could you just briefly kind of describe it? Because I think no matter where you live in the City, when they describe that area, the first thing is the traffic congestion along Columbus Boulevard and all. What remedies have you suggested? What people do you have working on this to try to deal with those kind of -- with the traffic, the general traffic issues?
Certainly. That's the 800-pound gorilla that we have to address, and we knew that. And we think successfully so. I mean, that's the message, unfortunately, we have not been able to successfully communicate because we have been drowned out by many other voices 150 2/21/07 RULES - Bills 070006, 08 through that are addressing collateral issues. We retained Orth Rogers, one of the preeminent traffic firms in the region, to analyze the current traffic bottle necks that exist, largely driven by a lot of the big-box retailers on the south end of Columbus Boulevard. And we knew that that was Job One because there was no sense for us looking to invest in Phase I over a half a billion dollars and through three phases approximately a billion dollars if our customers couldn't get to our facility.
So out of pure selfishness, we needed to solve the problem. But, of course, being a good citizen, we needed to address it for the community groups. They have undertaken probably the most exhaustive of any of the five applicants of a traffic analysis far removed from the few intersections that 151 2/21/07 RULES - Bills 070006, 08 through surround our property and have come up with a series of plans that involve additional left-turn lanes, traffic signalization, some widening that not only addresses the marginal traffic that our project would bring to the site, but also actually, after taking that into account, improves existing traffic flow by 32 percent. So in other words, the situation -- (Laughter.)
If I was a community resident, I would also scoff at that, and we welcome the opportunity to sit down with them. I think that the -- this committee should take some comfort in the fact that the Gaming Board had its own independent traffic consultant that reviewed our plan thoroughly and confirmed and corroborated our conclusion. In addition, the City Streets 152 2/21/07 RULES - Bills 070006, 08 through Department we worked with through all throughout the course of the calendar year 2006, and the City Streets Department also corroborates our conclusions. We, unfortunately, have been frustrated with not having had the opportunity to present this to people who should be skeptical, who should look at it as whatever we generate might be propaganda. We're happy to be able to have the opportunity to sit down and explain it and show why our conclusions are correct and why they have been verified and corroborated by independent traffic consultants for the Gaming Board.
Sir, maybe I misheard you. Did you say a little earlier, when you were describing the traffic, did you call it "marginal traffic"?
The additional traffic that our project would generate 153 2/21/07 RULES - Bills 070006, 08 through over the top of the existing traffic.
It's just 6 semantics. We're just saying the extra 7 traffic -- 8
No, extra, the 11 extra traffic. 12 In other words, when you take 13 into account all of the traffic, which is those -- the traffic that's currently there plus what we would generate, the conditions would improve by 32 percent after our traffic improvements. (Jeers.)
I'm just -- let me just piggyback on that question. How many people do you expect there a day on average?
Well, it depends 154 2/21/07 RULES - Bills 070006, 08 through upon what phase.
How do you characterize that as a marginal increase in traffic? (Applause.)
Councilman -- no, councilman, I was not using "marginal" in the sense of suggesting that it was insignificant. 155 2/21/07 RULES - Bills 070006, 08 through 2
"Marginal" was 4 just simply by extra, additional 5 traffic. I'll re -- 6
Yeah, I think we all misunderstood that. Okay. The traffic report, have you provided that to either Councilman 156 2/21/07 RULES - Bills 070006, 08 through DiCicco or anyone? I mean --
Yes. The City 4 has, it the Gaming Board has it, and 5 we've distributed it actually to the 6 community groups. 7
Okay. 8 Could it be distributed to the 9 committee, also? 10
You're welcome. The Chair recognizes Councilwoman Miller.
Good afternoon. Why did you select this site? How many other sites did you look at?
We -- we -- the 5 partnership that owns the site is 6 comprised of a large group of local 7 partners in Foxwoods' development. And 8 Foxwoods' development, they assessed 9 every site in town and probably 10 discussed the opportunities with every 11 landowner. 12 They ultimately decided to pick 13 the local partners in this who had this site before Foxwoods' involvement because of a combination of factors. They -- they feel that with the probability that there would have been a casino on the northern end of the waterfront, that this site presents an historical opportunity for the City, who has labored long and hard to try to get waterfront development, (indiscernible) development along the entire length of the waterfront. They recognized the traffic 158 2/21/07 RULES - Bills 070006, 08 through issues, but they understood that the local partnership presented unique aspects that no one else did. Forty-two percent of the revenue from this ownership group will go to charity. So as they balanced, as most things in life, Councilwoman, the various pros and cons of the various sites, their view was that this site presented the best alternative.
Okay. 13 Because isn't this site near -- you know, I'm not from South Philadelphia, you know, I'm not super-familiar with Delaware Avenue, but isn't this near Washington Avenue?
Okay, all right. 'Cause I was actually down there one Sunday, looking for Staples, and I really didn't know where it was. So I was going in and out of the various shopping plazas, and it was really a lot of traffic on that Sunday. 159 2/21/07 RULES - Bills 070006, 08 through So -- (Applause.)
So just 5 lately is when I really kind of 6 understood exactly where your site was 7 going to be. 8 We -- I've been -- we were 9 dealing in this but further north with 10 the Trump project that was closest to my 11 district, and I hadn't really been 12 paying that much attention to the South 13 Philadelphia waterfront development. However, I just think it's a lot of traffic down there already. I mean, it is heavy traffic. (Applause.)
So that's what made me wonder why you chose that site, because it's just so much going on down there.
We fully acknowledge that the community is enduring very difficult traffic situations as it currently consists -- 160 2/21/07 RULES - Bills 070006, 08 through uh, persists. And right now, there are no plans that I'm aware of to attempt to alleviate that. Essentially, you have the status quo. And we fully understand the apprehension and skepticism that is simply human nature, but we would love to have an opportunity to come to reappear. We can go over the traffic with you so you could see yourself. We believe we are the one solution for the community to address the current traffic predicament that they currently have to endure. We believe that we will create a -- an improvement over the current traffic conditions after you add our traffic in -- (Jeers.)
And we want to be able to show that to you. We will be happy to reappear at such time as you would like to -- to schedule that.
Well, 161 2/21/07 RULES - Bills 070006, 08 through those train tracks that are right near you, they're not operable, are they? I mean, it looks like it's a lot of weeds and whatnot growing up out of that.
The answer is 7 that they are sparsely used, and there 8 have been discussions about possibly 9 putting in a light-rail system that 10 might alleviate vehicular traffic by 11 providing an opportunity for people 12 throughout the entire waterfront 13 district to travel up and down to the restaurants and to the condominiums that are being built there, without ever having to get in a -- in an automobile.
Thank you. The Chair recognizes Councilman Kenney.
Thank you, Madam President. 162 2/21/07 RULES - Bills 070006, 08 through Councilwoman, I can tell you, I drive that street every day just about. And from the exit ramp at Washington Avenue to now about Oregon -- used to be Snyder, now about Oregon -- is any time of the day, not rush hour, it can be in the middle of the morning or in the middle of the afternoon, you can't move on that street, and -- (Applause.)
And I -- I 13 know many people who have lived there have developed this little trick of when you're in the middle lane between Christian Street and Washington Avenue and the people are turning off onto Christian Street, you got to do that little zigzag to get on the -- it's -- it's dangerous and -- And the other issue, though, I need to raise is the relationship to your proximity to the commercial Port of Philadelphia. I know that SugarHouse has issues relative to the river, but 163 2/21/07 RULES - Bills 070006, 08 through they're somewhat back, they're somewhat set back so -- and you guys are kind of up, right up front there. Truck traffic on our -- on Columbus Boulevard, a/k/a Delaware Ave. or /Delaware Avenue is an issue because it does -- it's the major way in which the port is fed its goods for export and for import. That traffic, as it's delayed, costs money. The cost of that money could -- and I think logically may -- create a situation where a shipper says, You know what? I can't get in and out of that port anymore. You know, my truck guy's got to sit here -- (Applause.)
My trucking company or my shipping company has to have its, you know, people idling and wasting gas, polluting the neighborhood, polluting the environment, and also creating costs for me to use the Port of Philadelphia. 164 2/21/07 RULES - Bills 070006, 08 through I mean -- and we have a long and important history of employment there, both with stevedoring and with trucking, and I don't think that that should suffer. Because the problem that I face with all of the studies -- and I don't discount that your -- the studies are being done in good faith, and you want to improve that area too 'cause you want to get your customers in there. I know from dealing with the I-95 ramps from back in -- God, I'm getting old 'cause this is back in -- this has got to be 28 years -- 27, years ago. It took forever to get things done from PennDOT to mitigate the situation relative to the ramps or 95 going through that neighborhood. It's got to be -- (Applause.)
I would estimate that if they started today to appropriate the money to design the 165 2/21/07 RULES - Bills 070006, 08 through mitigation ramps and highways things that need to be done, it's got to be a minimal of five years before those things are actually operable. And what do we do in the meantime? Because the traffic issue that I talked to you about relative to the Delaware Avenue artery and its relation to the port, the other problem is that if I'm sitting there, trying to get to Ikea or to Home Depot or to your casino, and I'm sitting there long enough, I'm making a right-hand turn somewhere. And I'm going to get on Front Street or I'm going to get on Second Street or I'm going to get on Moyamensing Avenue -- (Applause.)
-- and I'm going to figure out a way to get where I want to go, but I'm not going to sit and idle in this traffic. And that's the crux of the problem. And not only is it the port 166 2/21/07 RULES - Bills 070006, 08 through and its commercial aspects, but it's -- it's shifting, because of congestion, the traffic west. And west is where people live. And it's -- I mean, that's the problem. (Applause.) (Cheers.)
So while I 11 -- while I -- and I know your task, as 12 part of the gaming of Act 71, is to get 13 that temporary facility and to get the slots up and running as soon as possible. So we're going to be bringing people to that area because the State wants the revenue, the City wants the revenue, you guys certainly want the revenue, and there's nothing evil about that. But while we're waiting for the mitigation, the concrete to be poured for the ramp that goes directly to your door, I don't know what's going to 167 2/21/07 RULES - Bills 070006, 08 through happen 'cause it's going to be a nightmare for you and for us. And that's the problem. (Applause.)
Yeah. I think 11 you have very ably summarized the 12 challenge that currently exists, and I 13 won't take issue with anything you had to say. In fact, I think you actually, Councilman, make my argument. What I'm saying to you right now is that the shippers who might have a legitimate question about whether it's cost-effective for them to use our ports have that current conundrum today, as we speak. You just said, anytime of the day, you run into the issues there. We believe that we are the only solution. There is no discussion -- (Jeers.) 168 2/21/07 RULES - Bills 070006, 08 through 2
And I -- I -- I hear the -- I hear the audience, and I understand, and you should be skeptical. But what I'm saying is, you should want to then hear the rationale and see the money that Foxwoods will be spending out of its pocket to improve the conditions now so that those shippers can get through.
I'm not 12 discounting your desire or your 13 intention in fixing an existing problem and I have no argument with it. What I have argument with is: What is the impact of the 10 to 15,000 or more visitors per day and their automobiles while the problem is being solved? Because you can't just throw down an offramp without taking a lot of time to design it and a lot of time to build it. I mean -- and that's basically -- And the other issue as it 169 2/21/07 RULES - Bills 070006, 08 through relates to any offramp or any other mitigation, do I have to take a couple streets? I mean, on-ramps don't necessarily just appear. (Applause.)
They 8 need -- they need expanse so that they 9 can move. 10 And what -- I mean, we lost -- 11 and I don't want to go over old history, 12 and maybe you know the history of it or 13 maybe you don't. We lost literally thousands of homes from Queen Village through Pennsport through Whitman because some, you know, U.S. Department of Transportation policy at the time gave states tons of money to build highways. And those homes had people living in them and they had to move. And those houses were torn down, and we have a lovely concrete thing that goes right down the middle of our community. And I don't want to be in a 170 2/21/07 RULES - Bills 070006, 08 through position to have to tell some more people or have the State tell some more people that they got to get out of their houses 'cause we got to build an exit ramp into Foxwoods. (Applause.)
Again, I 9 couldn't agree more. 10 First off, we're not planning 11 to do a temporary facility, so we would 12 -- 13
No. 19 So we recognize the challenges that would be present were we to attempt to be attracting them while the roadwork was underway. We have a couple of years to undertake and complete the roadwork, all of which are changes to the local road 171 2/21/07 RULES - Bills 070006, 08 through network and not an offramp. Were an offramp to be embraced by PennDOT, it would not involve the condemnation or the loss of one residence.
Based on 12 PennDOT's last performance last week, I 13 don't know if I necessarily trust them to be designing the ramp that well. (Applause.)
Well said. But I think that Rhina Cutler, who used to be a City official, is leading the effort now to begin to look at that --
-- which is down the road, but I think a cornerstone of that is that not one residence would be 172 2/21/07 RULES - Bills 070006, 08 through taken.
All right. 4 I just wanted to -- and I think you 5 understand the passion that some of us 6 who have lived and grew up in that 7 neighborhood have relative to these 8 issues because they're deep-seated and 9 they're historical, and they've affected 10 a lot of people in negative ways. 11 And I'm not disagree -- again, 12 I'm not denigrating your efforts or your 13 studies, and I -- at some point in time, I hope we could figure out a way to make this all work, but I -- I know there's going to be a period of real pain and I don't know how long that period of pain's going to be just on the configuration of the roadway, not all the arguments we could have about social ills and all those things. But I don't want to see -- as you said, you're not taking one house. I don't want to see one house taken, one business taken, and I don't want to see 173 2/21/07 RULES - Bills 070006, 08 through one port job lost, and I don't want to see anybody go out of business as a result of us having to reconfigure this whole area, and I know -- hopefully, you share the same --
Well, I born and 8 raised in Olney, but if I was from 9 Pennsport, I would probably be from 10 Missouri and say, "Show me." 11
And we're -- al we want is an opportunity to have that dialogue to show them.
Thank you, Madam Chair. And good morning, gentlemen. 174 2/21/07 RULES - Bills 070006, 08 through For the Rules Committee's benefit, the independent traffic study engineer we hope to have signed on by the end of this week. That was the resolution supported by all members of Council to retain an independent traffic engineer. On the issue of the City Streets Department engineers' findings, I think it's also important that the Rules Committee understand that the person who worked previously for the Streets Department was immediately dismissed upon supplying that recommendation without authorization from the Streets Department, meaning that the Streets Department did not necessarily concur with his findings. He was fired as a result of that. He did it basically on his own. On the issue of the traffic study, Foxwoods' study -- and correct me if I'm wrong -- when you did this study, it did not take into consideration two 175 2/21/07 RULES - Bills 070006, 08 through 2 casinos on the Columbus Boulevard/ 3 Delaware Avenue corridor that was 4 site-specific? 5
Site- 7 specific. So it did not take into 8 consideration another casino within 9 three miles of its location. 10
We're working 11 now with Gannet Fleming, the -- the 12 traffic consultant for SugarHouse, to 13 take a look at those issues.
So it's reasonable to say that not only the Streets Department study may have been flawed; there may have been obviously some opportunities that need to be adjusted based on your own consulting engineers' findings now that there's another casino, a potential casino, within three miles.
We actually thought the Streets Department analysis was magnificent; we wouldn't call it 176 2/21/07 RULES - Bills 070006, 08 through flawed.
Well, 4 certainly. It agreed with your 5 consultant, naturally. 6 I think, Mr. Schwartz, you 7 mention something about this casino kind 8 of fits into the City's riverfront 9 development plan? 10
What I said was 11 that the CED, which had originally been 12 looked at for this location as well as 13 the SugarHouse location for casino use, took into consideration, with a lot of planning, the neighboring uses on both sides of these -- of this project. On the one side where you have a shopping center, it's a commercial use. On the other side, you have the Comcast and you have vacant land, and then you have the sheet-metal workers school as well as their meeting building. These are -- these are commercial uses. And -- and the CED would be 177 2/21/07 RULES - Bills 070006, 08 through compatible with those uses.
Well, let 4 me, for the purposes of giving you some 5 information, there is and has been a 6 development plan that has been being 7 worked on on the sheet-metal union hall 8 site for a residential high-rise 9 condominium and mixed-use development. 10
So it's 12 not specifically just going to be for 13 commercial use. There are a couple of -- there are other
There are other interests. I know what's on the ground now.
But there are other interests, so it's not that 178 2/21/07 RULES - Bills 070006, 08 through the City -- and the way that I understood your comments was that the City had a plan to keep this basically commercial, and that's not accurate. In fact, there is no plan.
And that's 9 why the Mayor signed an executive order, 10 although some people may not be in favor 11 of that, but the Mayor did sign an 12 executive order where Penn Praxis is now 13 working with the community to develop a master plan, and that master plan could very well turn out to be more of a residential environment as opposed to -- (Applause.)
-- as opposed to additional commercial. No 20 one knows yet because that process is still being fleshed out. And I thought that was important for this committee to understand that as well. Also, are any of the owners of Foxwoods here today? 179 2/21/07 RULES - Bills 070006, 08 through 2
Well, I -- 4 I think if I can use my colleague Wilson 5 Goode -- Councilman Goode, in a recent 6 discussion with Wachovia, I think it's 7 rather insulting -- and no disrespect to 8 you gentlemen, you're doing a job for 9 your client -- that the owners did not 10 even have the courtesy of coming here 11 today. 12 (Applause.) 13 (Cheers.)
And I would hope that you bring this message back to them, that in the future, if these discussions continue, I think we need a face with the operators to know who we're dealing with. Thank you. Thank you. (Applause.)
Madam President? I apologize. 180 2/21/07 RULES - Bills 070006, 08 through 2
Has your 5 plan, the Foxwoods plan, changed at all 6 since the public comment period ended in 7 June of '06? 8
The architects 9 and engineers are -- are constantly 10 reviewing it, but there's really been no 11 material change. It's essentially 12 CED-compliant. 13
Well, that's not the question. The question was: There was a proposal that was submitted, there was an architectural rendition or a concept of what the site would look like, and there was a plan that was represented not only to the community but also to the Gaming Commission Board. Has there been any adjustments to those physical plants that you know of?
I do not know of. 181 2/21/07 RULES - Bills 070006, 08 through 2
Would someone get back to the Chair to let us know if there have been any changes?
Thank you, 10 Madam President. 11 I want to ask you gentlemen the 12 same question that I asked SugarHouse 13 relative to riparian rights. Do you have a riparian-right issue at that site? And how much land is necessary or not necessary to -- what's your total site size?
Okay. Do you have a desire to acquire riparian land? 182 2/21/07 RULES - Bills 070006, 08 through 2
The answer is, our plans envision a totally land-based development. The decision about whether there would be a riparian grant or not is solely in the legislature and Harrisburg's decision.
The Gaming Board 10 asked us that question 'cause it seemed 11 to be that they were desirous of there 12 being a riparian development because it 13 would be a greater attraction as a destination. Our response to that was that, actually, it's a much more efficient operation for us to be totally land-based. To extend out into the water is creating a larger horizontal development plate, which is more inefficient. But I think, as the chairman of the -- of the -- of the tribe said, if we were to have the opportunity to be able to develop in the water, it would 183 2/21/07 RULES - Bills 070006, 08 through create an unparalleled customer experience. So the answer is that we do not need it. We would welcome it if it were available.
Does the 8 non-acquisition of riparian land create 9 a closer proximity of your front door to 10 the roadway? 11
Not at all, 13 so having riparian land does not allow you a further setback.
Thank you. Any further questions? (No further questions.) 184 2/21/07 RULES - Bills 070006, 08 through 2
Gentlemen, thank you very much. WITNESS PANEL: Thank you.
I 6 would ask Mr. McPherson to please read 7 the names of the next group or panel. 8 MR. McPHERSON: Our next panel 9 consists of representatives from 10 Casino-Free Philadelphia. They are Anne 11 Dicker, Caryn Hunts, Jeff Benedict. 12 (Witnesses come forward.) 13
Good afternoon. Please identify yourself for the record. and proceed with your testimony.
Good afternoon. My name is Ann Dicker, and I am an organizer with Casino-Free Philadelphia. Over the past few weeks -- in fact, 20 days, we have collected over 27,000 signatures to try to get a referendum placed on the May 15th ballot. Although that referendum is not on the topic today, one of the things 185 2/21/07 RULES - Bills 070006, 08 through that we have been trying fruitlessly to get is an opportunity to have our say on what is proposed to be a Las Vegas on the Delaware Riverfront. On June 2, 2006, all public commentary was stopped from the unelected Pennsylvania Gaming Board. We asked that that commentary be reopened, and we were denied on several occasions. I am so happy to be here, giving testimony in front of Council on that issue. I'm going to actually yield over to Jeff Benedict, who has some important testimony concerning the experience of other places in putting casinos in a residential area.
Madam President Verna, members of the Council, Councilman DiCicco, it's a pleasure to be here this morning -- or this afternoon. I am perhaps the only out-of-towner here. I'm from Connecticut. 186 2/21/07 RULES - Bills 070006, 08 through I actually live next door to Foxwoods. I drove past there this morning to get here -- to get to the airport to fly here. I was interested, Councilman O'Neill, in your --
Sorry. In your 10 questioning about traffic and in the 11 answers that were made in response to 12 that. Perhaps I could provide a little 13 perspective in the opening to my statement today. Foxwoods owns a casino in Connecticut. There is one another one. They are less than twelve miles apart. Yours presumably would be about three miles apart. Our two casinos currently generate 80,000 motor vehicles per day on our roads. Those are new motor vehicles that were not there before these casinos were opened. Those are not all customers; 187 2/21/07 RULES - Bills 070006, 08 through those are employees, customers, buses bringing senior citizens, delivery trucks. But in sum total, it's 80,000 day. And that's the average day; that's not New Year's Day, that's the average day. To put that in perspective, think about a Philadelphia Eagles football game and how many cars that generates for a Sunday afternoon eight times a year. This is every day -- 80,000 cars a day. That impact is a sudden impact. It comes on like a light switch. When these buildings open, the cars start coming. You don't have to wait three years for that impact to show up; it will arrive overnight. And whether you like it or not, it is going to change the roads, the business, and everything down there. In our case, in Connecticut, we started with a small-scale casino which has grown over years. Casinos never 188 2/21/07 RULES - Bills 070006, 08 through 13 get smaller, and they build out. The more -- the bigger they get, the more revenue they generate and, they will argue, the more revenue you will get. And traffic increases. Foxwoods has promised in Connecticut that they will pay for the roads and the changes. It hasn't happened. The taxpayers and the state are building and paying those buildouts. And inevitably, properties do have to be taken. When you widen a road, land has got to be taken. There are a whole host of legal issues that arise, whether it's eminent domain, because homeowners don't want to give up their houses, businesses don't want to go. Traffic is -- it is a huge factor. " 15,000? 189 2/21/07 RULES - Bills 070006, 08 through 2 First of all, I think that's a 3 very conservative number. Second of 4 all, you got to factor SugarHouse into 5 that, and that's probably a projected 6 double right there. And that's at the 7 beginning, that's now, when they open. 8 What's it going to be in five years? 9 And in ten years? 10 And, honestly, I didn't come 11 here to talk about traffic because I'm 12 not an expert on traffic; that's just a 13 significant experience we've had. I was asked to come here primarily to testify about impacts that are economic in nature. Certainly, traffic has an economic element. But I think -- what interested me -- and I have to confess: I've been to a lot of these hearings, and so there's not a lot that I see that's new, but I - I heard two things here today that did surprise me, and I wrote 'em down. "I've 6 heard that statement lots of times; 7 that's not new. 8 What surprised me was made it. 9 The spin-off comment came from the 10 Solicitor. The arrival of new 11 businesses came from the planner. 12 Now, what shocked me was in -- 13 I've been involved in this issue for many years in many states. I have never heard a city official, an attorney, a planner make that argument. It's always been made by the lobbyists and the lawyers for the casinos. What surprises me here is that, first of all that, that argument has proven to be not true in almost every location that casinos have gone in -- except for Las Vegas, a city whose financial plan is built around the gambling industry. That is not 191 2/21/07 RULES - Bills 070006, 08 through 2 Philadelphia. 3 And to argue that you're going 4 to see spin-off in jobs, I think, is -- 5 it's mythical, unless these two casinos 6 are able to do something that no other 7 casino has done.
8 Yes, they'll create some 9 constructions jobs 'cause you got to 10 build these things, and they're going to 11 employ a few thousand people that have 12 to staff them, but to suggest that your 13 neighboring businesses are going to thrive and that there's going to be spin-off is simply not the case. Connecticut provides a great illustration. We heard that pitch, we bought that argument, we signed on the dotted line for that economic spin-off in jobs, and that has -- we're now 15 years in, and we have found that that has not happened at all. These casinos are typically an enemy to any business that competes with them. If you're in the service 192 2/21/07 RULES - Bills 070006, 08 through industry, if you have hotels, if you're in the food-and-beverage industry, if you're in the retail market, these are not your friends. They want to capture the customer and keep them inside; they don't want to encourage them to go eat and drink across the street or encourage them to stay in hotels in midtown. )
And you don't have to take my word for it. I mean, Connecticut has Marriott, we have Holiday Inn, we have Sheraton. Call them up. Ask them what has happened to their hotel occupancy rates in the county around the two casinos. See what's happened in the last ten years. Ask the restaurant owners in the counties around the casino not only what's happened to your business, but what's happened to your staff. They're gone. We've lost our labor force. 193 2/21/07 RULES - Bills 070006, 08 through And I think these -- you know, I'm not here to make an oral argument about gambling; people can do what they want on that. This is a financial thing that you're being asked to consider. You're being pitched that this is going to be bring revenue and money to Philadelphia and to the State. I'm suggesting that that has been pitched in many other locations, and those who have played that game have found out through sad experience -- Connecticut is a perfect case -- that that doesn't pan out. Perhaps the best illustration is, just a couple years ago, we get -- we get $2.4 billion from Foxwoods; that's how much money they've given our state. That's just one of the two casinos. A proposal came up a few years ago to build two more. Argument was, we can double what we're giving you now if you'd let us build two more. That's a 194 2/21/07 RULES - Bills 070006, 08 through 2 nice chunk of money. 3 You might ask, Why did the 4 state of Connecticut recoil and pass a 5 piece of legislation that banned, 6 outlawed the construction of any more 7 casinos in the state? 8 Because we've played that game 9 for 15 years, and we have found out it's 10 a losing game. We were playing on house 11 rules, and the house always wins. We 12 lost. The cost was too high to our 13 businesses, to our infrastructure, to our public-safety budgets. And, frankly, the last thing that I'll mention is -- and it's easy to overlook this. You've all heard about addictive gambling; this is what concerned me most. And I don't have a dog in this fight, but if I lived here, if I sat in the seats that you sit in, what would concern me most is where they want to build these two facilities. (Applause.) 195 2/21/07 RULES - Bills 070006, 08 through 2
There is -- the gentleman who sat up here a little while ago who's a consultant who said there is no research to show or statistical work to prove that when a casino of this size comes to town, there's a correlation between that and the upswing in crime. Well, let me just tell you why he can't find any research: Because it has never happened. There is not a city in the United States the size of Philadelphia that has dared to do what's being contemplated here -- (Applause.)
-- put casinos in the heart of an urban area. Not one but two casinos within three miles in one of the largest urban centers in the United States. There isn't a place you can look in the country that is this big and this densely populated that has casinos within its city limits. This is an experiment that Philadelphia should not be part of. If 196 2/21/07 RULES - Bills 070006, 08 through you -- (Applause.)
If you look at 5 the study that was done for Congress in 6 1999 on gambling impacts, probably the 7 most important piece of research that 8 came out of that study was this fact: 9 Gambling addiction and problem gambling 10 doubles within a 50-mile radius of a new 11 casino. 12 Now, think about that for just 13 a second, where this is going to go. They're going to put this right next to urban neighborhoods, where people can walk to the facility. When these two casinos were built in Connecticut, they were built in rural areas -- you cannot walk to them, it's a long drive from any urban center. When they opened, we had one state-funded gambling-addiction facility in the state. We now have 17, and they are jammed, jammed. We don't have enough. And there is no one who can 197 2/21/07 RULES - Bills 070006, 08 through walk to our casinos. When you make these things so easily accessible to this many people, one thing I can guarantee you will happen, guaranteed: You will see an incredible spike in the number of people who do not gamble now -- they do not go to Atlantic City, they do not go to other states to gamble -- who will now come here to gamble because they can get off work at 5, meet up with five friends, five women, and go play slots. And I emphasize women for a reason: Because what we have found in Connecticut is that slot machines -- never mind table games and dice and cards, which men play and have been playing for a long time. Women are particularly captive to slot machines. The research is there; it is compelling research. I can tell that you over 90 percent of the people who have been prosecuted in our county for gambling-related thefts, larcenies, 198 2/21/07 RULES - Bills 070006, 08 through 2 embezzlements, stealing are women who 3 had no prior criminal history, who had 4 good jobs, who became addicted to slot 5 machines because they started going to 6 Foxwoods and Mohican Sun after work and 7 on the weekends. It is the most 8 addictive device in a casinos. 9 And these two guys are selling 10 their ideas to you on the basis of slot 11 machines. That's the mother's milk of 12 SugarHouse and Foxwoods in Philadelphia. 13 It is going to have a huge impact on people who live close. And what I would just suggest is that the cost of picking up and cleaning up the mess that comes with new troubled and problem gamblers is not just as simple as the folks who need to get treatment. It's the crime. I'm not talking about prostitutes and drug-dealing and that kind of stuff out on the street that happens in Atlantic City and other places; you're going to see some of 199 2/21/07 RULES - Bills 070006, 08 through 2 that, yes. 3 But more important than that is 4 the new class of people who you would 5 never expect to become problem gamblers 6 will become such. And with that comes 7 cost of treatment, of job loss, of 8 incarceration, of bankruptcy, of 9 property foreclosures. It is a cascade. 10 And so I've got my testimony 11 here. I would be happy to entertain 12 some questions after the other panelists 13 peak. And I appreciate the privilege of being here as someone who doesn't live in Pennsylvania. Thank you.
Thank you for your testimony. (Standing ovation.)
Thank you very much for your testimony. The Chair recognizes Councilman Kenney.
Thank you, Madam Chair. 200 2/21/07 RULES - Bills 070006, 08 through Just for clarification's sake, may have missed it if you said it earlier. Are you with an -- I know you have written testimony. Are you with an organization or a group, or are you here on your own?
Well, I'm here 9 by myself, but -- I'm not with a group, 10 but I was brought -- I was asked to come 11 here by a number of people who live in 12 some of these neighborhoods. 13
Oh, no. 14 Oh, no. I'm not -- I don't -- I'm glad you're here. I'm just wondering whether you were involved with an organization that was --
I -- I used to -- I used to be the -- I was one of the cofounders and the former president of the Connecticut Alliance Against Casino Expansion, Inc., which was a corporation that was formed in Connecticut to essentially lead the effort to pass legislation to stop 201 2/21/07 RULES - Bills 070006, 08 through casinos from --
Madam President 10 and respected Councilmembers, I just 11 wanted to introduce myself. I'm Daniel 12 Hunter, Coordinator of Casino-Free 13 Philadelphia. And part of the history of Casino-Free has been trying to give a chance for citizens to have more input in the process. And, naturally, the name suggests that we're anti-casino, and many of us in the organization are. But as the organization has developed, it's become more and more of us who aren't necessarily against casinos per se, but we're particularly against casinos within residential neighborhoods. 202 2/21/07 RULES - Bills 070006, 08 through As Jeff Benedict just mentioned, this is a new experiment to be doing, and so that's one reason why we put forward a referendum, which many of these people in this room were involved in getting signatures for, for which we got 27,254 people who signed a referendum to give Philadelphians a voice in the process, because we've been saying that again and again: Philadelphians have been locked out of this process. We've seen that with the Pennsylvania Gaming Control Board. I was one of about people who were involved in an action attempting to get -- make public some of the documents that -- including the updated traffic plans, some of the updated architectural renderings that Councilman DiCicco referenced earlier from Foxwoods and SugarHouse as well as the other -- three other sites here in Philadelphia. Those weren't made public 203 2/21/07 RULES - Bills 070006, 08 through 2 by the Pennsylvania Gaming Control 3 Board. We thought that was a serious 4 issue. 5 If we're going to have a real 6 conversation about what -- about these 7 buildings, about these casinos, the 8 public should be able to have quality 9 information about what's being built as 10 it's being built. 11 So we asked for updated traffic 12 plans, updated site plans, architectural 13 renderings,environmental-impact studies, and all of those updates we weren't able to receive until right until the decision was reached on December 20th. So we were involved in attempting to retrieve those from the Pennsylvania Gaming Control Board offices. So the process itself has been one which has locked out the public in number of areas: One, in terms of giving meaningful public input; two, in terms of having access to quality information so that we can make a good 204 2/21/07 RULES - Bills 070006, 08 through 2 decision about this. 3 And what we're finding is as 4 we're learning more information, the 5 tide of discontent with these particular 6 plans is rising, not going down, and we 7 see it continuing to grow. We see it in 8 terms of support among union folks who 9 are seeing the impact it will have on 10 jobs, small businesses that are worried 11 about their -- about their security, and 12 you'll hear a bunch of testimony 13 following me about that. I just wanted to raise to you that we're looking for support on our referendum, and the reason for that is, our referendum would give the voters the first chance that they've had in Philadelphia to have a meaningful say on whether or not casinos should be built within residential neighborhoods. Our bill puts forward essentially a requirement that no casino would be zoned within 1500 feet of a residential neighborhood, a school, a 205 2/21/07 RULES - Bills 070006, 08 through 2 church, a mosque, and various other 3 residential facilities. 4 Because you heard from both 5 SugarHouse and Foxwoods -- and neither 6 of them would defend the location in the 7 form of saying it's a good idea to put 8 it right next to where people live. 9 And SugarHouse, in their 10 proposal, referred to people who live on 11 Allen Street as a buffer, referred to as 12 the I-05 buffer, rather than 13 acknowledging the fact that there are people who live right across from the SugarHouse site. Foxwoods -- again, the same thing. There wasn't defense of the site location, as you were asking.
And that's what we've seen over and over again, which is, there isn't a good argument to put casinos right next to residential neighborhoods, and that's why we're asking for voters to have a chance to say whether or not they believe, as we do, that casinos should 206 2/21/07 RULES - Bills 070006, 08 through not be placed right next to, right nearby two residential-use facilities. And I'm also happy to announce here that as of this morning, the City Clerk and the City Solicitor's Office both approved those to go through, so the petitions have been accepted and the City Solicitor also accepted them. )
So there's a lot 13 of passion behind me, and I appreciate all of your patience on listening to all of the hearing and testimony about this.
Hi. I'm Caryn Hunt. I'm a member of Casino-Free Philadelphia. It is the City's prerogative to plan for usage. That means the City must assess land-use issues and zone accordingly, usually in accordance with a plan, even if a particular use is 207 2/21/07 RULES - Bills 070006, 08 through mandated by the state. The people of Philadelphia demand that the City face its responsibilities in the matter of casinos and assert its zoning authority, without -- withhold any zoning from these sites that would enable them to in any way begin the permitting process. These casinos were foisted on us as a result of a corrupt process that denied citizens the right to participation in a full and open debate, a process that handed all sorts of power to an unelected, and therefore unaccountable, board in Harrisburg. They have tried to take away our zoning authority. They have failed. Both Representatives O'Brien and Keller have publicly stated that it is their opinion that the City of Philadelphia not only has this authority, but that if asserted, it will not be opposed at the state level. It was a long journey to 208 2/21/07 RULES - Bills 070006, 08 through 2 maintain our zoning authority, but we 3 have it and we must use it. 4 That being said, zoning is no 5 way to plan a city's development, and 6 it's been used to do just that for way 7 too long. 8 The proper way to grow the city 9 is through a comprehensive development 10 plan created through a process of 11 dialogue a process of dialogue with the 12 community, a long process, a process 13 that starts, as the Penn Praxis process did start, with an assessment of the values most cherished by residents. Any decision about the future of this city has to be made in conjunction with the people. "No way without our say" is not an empty phrase. But you can neither zone nor design away the disastrous impacts of these casinos. It is a lie to believe that the waterfront will be a family-friendly amenity for the benefit of residents once the casinos are there. Considering 209 2/21/07 RULES - Bills 070006, 08 through 2 Casino-Free Philadelphia just handed in 3 27,254 petition signature demanding that 4 this issue be put on the May ballot -- 5 that number gathered in just 20 days, by 6 the way -- it's plain that the 7 opposition to the casinos is growing, 8 not receding, and no Neighborhood 9 Investment District or Special Services 10 District scheme will suffice to buy us 11 off. 12 We have repeatedly been told to 13 negotiate with these casino operates for so-called benefits. Well, there are no 15 benefits. The loss to quality of life for those who actually live here and love Philadelphia and see its greater potential is too high. Our quality of life here is not negotiable. We don't want casinos. Though the Pennsylvania Gaming Control Board lists impacts considered, the unconsidered impacts are staggering. If you think these are not your problem, think again, because, I assure you, you 210 2/21/07 RULES - Bills 070006, 08 through 2 will be paying for them one way or 3 another, just like we'll be paying for 4 the privilege of traffic-mitigation 5 plans that disrupt neighborhoods. 6 If you think the paralysis that 7 will accompany the plans put forth by 8 the these two casinos to get people to 9 and from the riverfront is not our 10 problem, think again. The people who 11 work in the port industries know it's a 12 problem. 13 In addition to these and other impacts that I'm sure you're going to hear about, there are also health and environmental impacts. The Delaware River is our river. The riverfront should reflect our values and desires. We need to take a good look at the needs of the river and determine the best way to protect this resource for the community. We need to protect our river banks and riparian lands.
These two casinos sites require 211 2/21/07 RULES - Bills 070006, 08 through riparian lands, lands below the water's surface, lands held in trust by the State for the people for their original designs. These are ecologically- sensitive lands. If Philly is our heart, the Schuylkill and the Delaware are the lungs. We have an obligation, as a city built on a watershed whose development directly impacts river water that we and people in other cities drink, to proceed cautiously. South Philadelphians have experienced a number of incidences of severe flooding in recent years. The Water Department has few answers; mostly they blame the weather. And certainly, it's fair to say the problem has not been resolved. Thus, further connections to our sewer system should be postponed until this issue is fully addressed. According to the Asthma and Allergy Foundation of American, 212 2/21/07 RULES - Bills 070006, 08 through 2 Philadelphia moved from the third-worst 3 city for asthma sufferers to the 4 second-worst city. We have a 5 higher-than-average rate of death from 6 asthma because we have worse-than- 7 average air. We're getting worse for 8 air quality. 9 A study in California recently 10 found that children living close to 11 congested highways risk significant lung 12 damage, which contributes later in life 13 to respiratory and cardiovascular ailments. So why would we want to bring an industry to our city that plans to attract 9 million new cars every year to a three-mile area. The City is commissioning a traffic study. That's good. As long as the City is asking for an independent traffic study, we should also ask for the what impact this industry, which is a car-based industry, will have on our air quality. 213 2/21/07 RULES - Bills 070006, 08 through 2 Open spaces, especially along 3 waterways, in addition to providing an 4 anchor for long-term economic 5 prosperity, are necessary to the health 6 of our citizenry. Casinos are not 7 family-friendly uses. Open spaces and 8 recreational activities that truly 9 enhance neighborhoods and our children's 10 characters, that create community, not 11 destroy it, is what we want. 12 This doesn't mean stopping 13 development, but it does mean fostering smart development. Casinos are not smart development. Casinos and the State are targeting Philadelphia for one reason only: To extract wealth from our region, wealth that would otherwise circulate in and strengthen our local economy. Though some would have us look at casino operators as just another private developer, the truth is that gambling brings with it a bevy of vices 214 2/21/07 RULES - Bills 070006, 08 through 2 and undesirable fallout that other types 3 of developments don't bring. The 4 casinos and the State rake off the 5 profits and leave the surrounding 6 communities to deal with the baggage. 7 There are any number of better 8 ideas for growing our riverfront wisely 9 and well, ideas that will strengthen our 10 local economy for the long term, not 11 suck it dry, and bring good jobs. 12 I commend our Councilmembers 13 who, at this late hour, are finally responding to the will of their constituency and doing what they can to thwart the licensed casinos. But I believe the true heroes in this story are the citizens of this city who have relentlessly denied the mantra we've been told, that this is all a done deal. That we are where we are today with opposition to the casinos growing with demonstrable unity across the neighborhoods of this city is a 215 2/21/07 RULES - Bills 070006, 08 through 2 testament to the power of the people who 3 live here and their earnestness in this 4 issue. 5 The casinos that were licensed 6 are sparing no expense to prepare 7 themselves for legal challenge and to 8 protect their interests. The residents 9 are banding together also -- to protect 10 their investment in Philadelphia, their 11 children, their communities, their 12 quality of life.
13 There is only one acceptable outcome right now: That neither casino currently licensed for the riverfront be built. And, therefore, I urge Council not to zone the parcels of land involved in the riverfront in any way that could begin the permitting process, and to use the City's zoning authority as it is meant to be used -- in service of a land-use plan that makes sense and serves residents. I urge City Council to place the referendum, signed by over 27,000 216 2/21/07 RULES - Bills 070006, 08 through voters in Philadelphia, that says "no 3 casinos within 1500 feet of neighborhoods" on the May ballot, and let us make it clear to those who would foist casinos on our city that Philadelphia is a hostile environment for casinos. We don't want them. )
Thank you. 11 One -- a couple of quick 12 questions. You referenced in your 13 testimony that Representative Keller and O'Brien indicated to you that City Council had the ability --
Did they give any supporting documents that show in writing that we had the ability to regulate this?
It was a public 217 2/21/07 RULES - Bills 070006, 08 through meeting where they stated that.
I think 4 it's interesting that the people who say 5 that -- and Representative O'Brien 6 aside, 'cause he wasn't there then, 7 where the actual people -- 8
-- are the 13 actual people who gave us gaming in the first place. So, I mean, I don't mind -- I think it's our responsibility to be here and to be dealing with this problem, but I'm going to say it for the record again: I did not vote for Act 71, I would not have voted for Act 71, and I don't think it's fair to characterize -- (Applause.)
I don't think it's fair to character his -- not late efforts. He's been at this for 218 2/21/07 RULES - Bills 070006, 08 through months, dealing with people, find. And the other issue on riparian rights? I don't vote on them, either. And I don't introduce the bills to vote on them. And while we may make mistakes, do things you don't like or people don't like, when we're trying to do the right thing, we did not bring this problem to this doorstep. It was left here by the legislature. And I just want to make sure that the 27,200 signatures that you have now be delivered to every single legislator in the City of Philadelphia and every senator in the City of Philadelphia so that they can go back to Harrisburg and help fix this problem that they created, okay? (Applause.)
Thank you. 219 2/21/07 RULES - Bills 070006, 08 through Any other questions? Councilman DiCicco?
Thank you, 5 Mr. Chairman. 6 Good afternoon, everyone. 7 Thank you for your testimony, all of 8 you, and thank you for the 9 (indiscernible) effort in getting those 10 signatures. I mentioned that to you in 11 the hallway last week, to Anne and 12 David -- Daniel, excuse me, Daniel. 13 Mr. Benedict, you spoke about a lot of issues and the ills, if you will, of gaming. Philadelphia, for years, for decades, had been experiencing a huge loss in its population. In recent years, I'm happy to report, we've turned the corner in that regard, and we are seeing a lot of more of it -- a greater interest in people living in the city and people wanting to move to the city, in particular in the central Delaware waterfront area. 220 2/21/07 RULES - Bills 070006, 08 through Do you have any information that you can speak to about what gaming has done to property values in neighborhoods that are adjacent to these casinos?
I have 10 your book, but I didn't get to read it 11 yet. I apologize. 12
Well, this isn't 13 in there, but -- and I think I want to preface what I say by admitting that the comparison I'm going to give you isn't a hundred percent on point because I'm going to give you a comparison in Connecticut. And, again, our casinos are not in the heart of an urban center where there's a huge amount of residential property right next door. We don't have that, we also don't have a port and a lot of other businesses nearby. But what I can tell you, in 221 2/21/07 RULES - Bills 070006, 08 through Connecticut, and then I'll try to generalize this a little bit, is that what we've seen in terms of the housing market is that it has -- it has hurt the housing market tremendously. For one -- there's a couple simple reasons for that. When you sit there and think about, you know, where do I want to buy my next house? one of the things at the top of the list isn't next door to a casino. I mean, people -- that's a deterrent to buy a house. People buy houses based on the quality of the school system and, you know, the good neighborhood. They don't want to be near a traffic generator, they don't want to be near a problem generator. And so, it has had a softening effect on the property values in the towns that are closest to where those facilities are. I think, along those lines, it's fair to look at some other places 222 2/21/07 RULES - Bills 070006, 08 through 2 where it's more closer to your model. 3 And if you look in some of the urban 4 centers in other parts of the U.S. where 5 they have built casinos in the last ten 6 years, I think you're going to find a 7 similar thing. 8 This isn't a place where 9 residents or businesses are rushing to 10 acquire property. It is a move-away- 11 from type of object. There are very few 12 reasons that you would want to buy 13 property next door or in the neighborhood of one of these buildings because they offer so many of the things that people don't want when they're looking for residential. And, you know, one of your colleagues -- and forgive me for not having all of the names straight on the Council here, I apologize for that. But one of your colleagues sitting up front here earlier talked about your port and the number of jobs and the containers and the shipping 223 2/21/07 RULES - Bills 070006, 08 through 2 here. You know, I have to tell you, 3 sitting in the audience, I thought that 4 if there was -- if I were listing three 5 things that I would have at the top of 6 my list for concerns, that would be in 7 the top three. 8 I would see this as -- I'm not 9 here to advocate for casinos going 10 somewhere else in Pennsylvania; I'm just 11 saying I couldn't think of a worse place 12 to put them than where they're talking 13 about putting them. (Applause.)
Thank you. Thank you for testimony. No further questions, Mr. Chairman.
Thank you so much. Mr. McPherson? MR. McPHERSON: The next panel 224 2/21/07 RULES - Bills 070006, 08 through consists of: Joe Mahoney, Greater Philadelphia Chamber of Commerce; Delilah Winder, African-American Chamber of Commerce; Pat Coulter, Urban League of Philadelphia. (Witnesses come forward.)
Thank you. Good afternoon, members of Council. I'm Joe Mahoney, Executive Vice President of the Greater Philadelphia Chamber of Commerce, and I'm here today to offer prepared testimony on the subject bills. The Greater Philadelphia Chamber of Commerce has long been a proponent for economic development in the City and has supported the concept of gaming since the 1990s, when 225 2/21/07 RULES - Bills 070006, 08 through then-Mayor Ed Rendell proposed riverboat gambling as a vehicle to reduce the wage tax for Philadelphians and commuters alike. In May 1995, the Greater Philadelphia Chamber of Commerce participated in the Business Community's Perspective on Gaming at the Ernst & Young CEO Forum on the positive impact of gaming in Philadelphia. In July 1995, the Greater Philadelphia Chamber of Commerce President and CEO Charlie Pizzi testified before a House State government committee in support of a referendum authorizing riverboat gambling in Pennsylvania. In May 2003, the Greater Philadelphia Chamber of Commerce Board sent a letter to Governor Edward G. Rendell supporting gaming in Pennsylvania. In March 2004, the Greater Philadelphia Chamber of Commerce 226 2/21/07 RULES - Bills 070006, 08 through 2 President and CEO Mark Schweiker sent a 3 letter to the Southeastern Pennsylvania 4 Delegation urging the General Assembly 5 to legalize gaming in Pennsylvania. 6 This represents just a sampling 7 of the historic support the Chamber has 8 publicly stated for gaming in this 9 region. Again, economic development 10 remains the cornerstone of our mission. 11 As such, the Chamber was not 12 unhappy when the two casinos were 13 announced by the Gaming Commission to be located on the Delaware River waterfront. These locations could be economic drivers, which can spur development of Penn's Landing and other sites along the waterfront. After taking a look at the thousands of jobs and millions of dollars in new revenue the City stands to gain from these two casinos, as reported by the Philadelphia Gaming Advisory Task Force, we believe it is a win/win situation. 227 2/21/07 RULES - Bills 070006, 08 through 2 In addition, millions of 3 dollars will be earmarked for schools, 4 for Convention Center expansion, and for 5 a 1 percent reduction in the City wage 6 tax. 2 billion in gaming taxes in its 10 first five years of operation. 11 Philadelphia's portion of funds will be 12 used for wage-tax reductions. Between 13 75 and 90 million will go towards host fees to be deposited in the General Fund. SugarHouse is projected to generate 85 to 100 million to the Gaming Economic Development and Tourism Fund. During the interim phase, SugarHouse will directly employ approximately 600 people. Once Phase is completed, SugarHouse will directly employ approximately 1100 people. In addition, thousands more spin-off jobs will be created in the hotel, 228 2/21/07 RULES - Bills 070006, 08 through 2 hospitality vendor industry to support 3 and supply the casino. 4 SugarHouse is committed to 5 diversity in all training and hiring 6 programs. 7 Foxwoods, located on the 8 southern site, envisions developing the 9 project in three significant phases, 10 totaling $825 million of aggregate 11 investment. Phase 1 of the project will 12 generate 950 new permanent jobs. 13 Foxwoods Casino of Philadelphia would employ hundreds of people from neighborhoods throughout the City at wage and salary levels higher than those currently paid in the local hospitality industry. In addition, hundreds to thousands of indirect jobs can be created by the economic activity that's generated by Foxwoods Casino, Philadelphia's operations. Foxwoods will also act as a significant catalyst for the economic 229 2/21/07 RULES - Bills 070006, 08 through 2 development of the central Delaware 3 River waterfront.
A major advantage of 4 this site is that the plan development 5 is consistent with the City's long-term 6 goal of economically reinvigorating 7 activity along the southern portion of 8 the riverfront. 9 According to Gaming Task Force, 10 the majority of Philadelphians do not 11 believe gaming will be a detriment to 12 overall quality of life. 13 SugarHouse is committed to being a good neighbor and will address critical needs in the areas of economic development, community enrichment, and health and human service improvement in Greater Philadelphia. In addition, SugarHouse will contribute to a separate Community Development Fund managed independently. Likewise, Foxwoods Casino Philadelphia will contribute financially to a Special Services District that will support traffic mitigation, education, 230 2/21/07 RULES - Bills 070006, 08 through safety and security, supplemental city services, and senior citizen programs. Foxwoods Casino Philadelphia has also established a unique mechanism which will irrevocably distribute more than 40 percent of the project's total profits back into charitable causes in the community. This commitment will eventually generate hundreds of millions of dollars for local charitable purposes. The Chamber recognizes the concerns the neighbors have expressed, particularly with increased vehicular traffic along Delaware Avenue. We believe that all options should be considered to address traffic remediation in the area. The Chamber will reach out to the gaming operators to inform them of these concerns, of our concerns, and encourage their active participation in remediation efforts. Given the statistics on new 231 2/21/07 RULES - Bills 070006, 08 through 2 jobs and increased revenues for the 3 City, the Chamber cannot support the 4 subject bills or any other bills that 5 would hinder development of these two 6 gaming venues along the Delaware 7 waterfront. 8 The Chamber stands ready to 9 assist in any way appropriate to help 10 garner support for these gaming venues 11 and looks forward to working with 12 Council, this administration, and the 13 incoming administration in bringing this development to fruition. Thank you for the opportunity to testify today.
Yeah. Just one quick question, if I could, on something that was brought up before. Did the Chamber look into the existing businesses particularly around Foxwoods and what impact this would have -- I stole it, Councilman, sorry. 232 2/21/07 RULES - Bills 070006, 08 through (Laughter.)
We looked, 4 Councilman, at the totality of the 5 development possibilities along the 6 waterfront. We know that there have, 7 over the years, been many efforts 8 unsuccessfully attempted to develop 9 Penn's Landing and other sites along the 10 waterfront. 11 You know, we just viewed, you 12 know, economic development opportunities 13 coming in both directions with bookends as being something that -- that might encourage that development and help in that development.
You didn't exactly answer my question. I -- I -- did you look into any, you know, the Ikeas, the smaller businesses just off Columbus Boulevard? I mean, was any conversation given that? And do you have an opinion on what it would do to those businesses?
We recognize the 233 2/21/07 RULES - Bills 070006, 08 through traffic, you know, is a concern. And as I said, you know, we recognize that this is a concern on the -- on the community, and we've -- I've listened to the other testimony today. We've put out to our membership, you know, our interest in these projects, and we've not had negative feedback from our members. Have we reached out to specific companies like Ikea? No, Councilman, we haven't, so --
Anybody else down there that's members that you know of?
To my knowledge, 234 2/21/07 RULES - Bills 070006, 08 through we have not gotten -- we have gotten -- we have not gotten negative comments back from any of our members in the affected areas.
Thank you, 13 Mr. Chairman. I have a follow-up to that question, in relationship to the impact that it may have on local businesses, notwithstanding the big-box stores. The walkability, and I think Mr. Benedict raised this, the walkability of these two sites to adjacent neighborhoods. There are a lot of small businesses there, and I think Councilman Kenney spoke to this as well. Did you take in the southern end down at Second Street, where the 235 2/21/07 RULES - Bills 070006, 08 through Mummers clubs are, where the small mom-and-pop neighborhood shot-and-beer joints are, as they refer to them, all up and down that corridor from -- from Whitman all the way up through the lower end of Port Richmond and Old City and Northern Liberties? These are businesses -- some of them have been long-established business and there's some that have just begun because the neighborhoods are now repopulating.
People are moving into what were very depressed, blighted communities. If you look at Northern Liberties, I mean, there's a renaissance going on up there.
What will happen to those small businesses when people are able literally to walk within two blocks of where they live or now 236 2/21/07 RULES - Bills 070006, 08 through walk within two blocks of an establishment that they're accustomed to frequenting being able to walk to SugarHouse, or in the southern end, being able to walk to Foxwoods. Was any of that taken into consideration? And was any other consideration given to the fact about what will it do to -- and I asked this of Mr. Benedict -- to resale of residential properties, the sale of new residential properties? And to suggest -- and you and I have worked together. I mean --
-- we had the Briefcase Brigade when we fought the Administration on the wage-tax reduction stuff. We did a lot of things together. But to suggest that this may be the stimulus to develop our waterfront, I think maybe ten years ago, that argument would have held water -- no pun intended. 237 2/21/07 RULES - Bills 070006, 08 through 2
But there 4 is considerable amount of development 5 that has you occurred in the last 6 several years, and there are numerous 7 projects that are on the drawing board 8 as we speak. 9 Dockside. Mr. DePaul, who owns 10 Dockside, is considering building 11 another tower directly north of the 12 existing. So -- and Marina View and 13 Riverfront Square and Bridgeman's View, and I can go on and on and on. And I can speak to that with authority, if you will, because it's in my district.
So we don't need this today. Ten years ago -- (Applause.)
And I went from a question into a statement, and I have a tendency sometimes to do that 'cause I get kind of emotional about 238 2/21/07 RULES - Bills 070006, 08 through these issues. Ten years ago, you probably -- I think you could have convinced me, and maybe you couldn't have convinced the folks who live there, but you may have convinced me ten years ago that we needed some sort of a shot in the arm to get us moving. Yeah, it's true we haven't developed that 14-acre site which we all would think of as Penn's Landing in its entirety, but we've developed other sites that are a part of the Penn's Landing portfolio and along that corridor, and we're continuing to develop. Ten years ago, the argument probably would have been -- would have been justified that we need to figure out a way to create development down there to attract people to this city. But we're bursting at the seams. We're one of the best cities in the country post-9/11. Tourism is up -- 239 2/21/07 RULES - Bills 070006, 08 through 2 without casinos. So that argument just 3 doesn't work for me today. 4 And I wonder, again, as I go 5 back to my original question, was any 6 consideration given to the smaller, as 7 Councilman Kenney spoke to and I just 8 mentioned, the smaller businesses that 9 are, you know, within a block or two 10 walking distance, three blocks, four 11 blocks of where these -- the sites where 12 these two casinos are being proposed? 13
I can't answer for the specific -- to the, you know, the couple of blocks, Councilman. But, you know, most of our members are smaller businesses. And, you know, we've discussed these issues with them. And, you know, as I mentioned to Councilman Greenlee, you know, we have not received, you know, negative comments back from our small businesses. I wish I could give you a, you know, a finer answer than that, but it's -- you know, but that's you know, 240 2/21/07 RULES - Bills 070006, 08 through as honest an answer as I can give you.
And I 4 appreciate your honesty. 5 And, Joe, just to go back, and 6 this is not being critical of you. You 7 know, you mentioned the Chamber, you 8 mentioned Charlie Pizzi when he was the 9 former head of the Chamber. 10
You 12 mentioned the governor, you mentioned a 13 whole lot of people who supported, wrote letters of recommendation, supported the notion of gaming.
And if you add up all of those folks and all the state lawmakers in the City of Philadelphia, both legislators and senators, you would probably come up with maybe 150 at max. Not one person in this room, nor any person in this City Council, had the opportunity to make their position 241 2/21/07 RULES - Bills 070006, 08 through known to the State lawmakers. They gave us this stuff; we didn't ask for it, and we never voted on it, as Jim Kenney said earlier. So, you know, it's okay to say all these guys support it because it's good for economic development, but the voices of the people were never even given that consideration, and that's what is at the heart of this debate, this issue. We were silenced. Jimmy's right. And we've talked about this, and I got to be careful I don't go over, you know, the edge politically, because it is a political election year. But, you know, the spin is that it's everybody in the City. The ball was dropped in our lap. We were dealt the same hand that everybody else was dealt. And all we keep hearing is, well, it's going to create jobs and it's going to create revenue. That may be -- 242 2/21/07 RULES - Bills 070006, 08 through 2 that may be the case; we don't know 3 that. But we'd like to have some 4 responsibility for our own destiny, and 5 we haven't had that. 6 And we're going to do our best 7 in this council to try to figure out a 8 way to slow this process down. 9 (Applause.) 10
And to let 11 us have a say in this process because we 12 deserve it, and that's what we're here 13 to do. But thank you, Mr. Chairman, again.
Thank you. Mr. Mahoney, we have a lot of different industries in Philadelphia -- the hospitality industry, financial services, law; big, important industries in Philadelphia.
Where would 243 2/21/07 RULES - Bills 070006, 08 through you rank the commercial port?
Oh, I think the 4 commercial port is a very key industry, 5 Councilman. We've seen it grow with the 6 strategic port designation, you know, 7 and I think that it's a key industry, 8 you know, for this community. 9
Wouldn't 10 the Chamber and/or the Mayor's 11 Commission or anybody else or the Gaming 12 Commission want to do an analysis of 13 what effect gaming on Delaware Avenue would have to our commercial port before we talked about the economic benefits of it? I mean, wouldn't that be -- wouldn't we want an assessment of that to see what -- if we're stuck in traffic for five years before the mitigation stuff happens at Foxwoods, what effect does that idling truck have at Delaware and Washington Avenue when it can't get to where it's supposed to be on time, and that time costs money, and that time 244 2/21/07 RULES - Bills 070006, 08 through costs the shipping costs to go up, and that time causes all kinds of problems that somebody may say, You know what? Getting in and out of Philadelphia is terrible. They're going to fix it, but I can't have my business be responsible -- or be responsible towards my business. I'm going to -- maybe I'll go to Baltimore, maybe I'll go to Chester, maybe I'll go -- maybe I'll just -- I'll go somewhere closer, but I'll stop coming here. Wouldn't that have a devastating on both our economy and a lot of people's jobs?
Well, it could, Councilman, and I heard the response, you know, in talking to -- to the -- in particular to Foxwoods, you know, who have told us about the traffic study that they've done, and that the remediations that they've plan, not with new ramps, but with existing streets, would cut the problem, you know, 245 2/21/07 RULES - Bills 070006, 08 through significantly. Our opinion was that, you know, that that might be a helpful situation for the port, not a detriment to the port.
Even in the 8 interim, while they're -- before they 9 actually fix it? 10
We understand 11 that -- that -- that the problem is -- 12 is tough now, and that in their 13 construction phase, they plan to fix it.
So our opinion was that, you know, that those issues will be --
But in fairness, and I know you're here to put out the Chamber's position, and I respect you, and we've, again, worked together on other things.
You took Foxwoods' view that this will be fixed? 246 2/21/07 RULES - Bills 070006, 08 through 2
And then 4 said, Well, that seems reasonable, so 5 let's just say Fox is right? I mean, to 6 me, that's a big chance to take on 7 thousands of jobs. 8
As I said, 9 Councilman, we respect the port, we know 10 how important it is, you know. But, you 11 know, the information that we saw and 12 traffic studies, you know, led us to 13 believe, you know, that this was something that was taken into consideration and being addressed.
Okay. I just wanted to raise it 'cause I know it's an important part of our economy here in Philadelphia. I know that the people who run the operations down there are members of your organization.
And I hate to see them -- I'd hate to see you lose them. 247 2/21/07 RULES - Bills 070006, 08 through 2
And I -- you know, I should probably comment because you -- you made the membership comment. Neither SugarHouse nor Foxwoods, at least at this time, is a member of this --
No, no. 16 I'm talking about your (indiscernible) and DRS --
And Brown and Penn Warehousing, those members of your chamber.
I wanted to 248 2/21/07 RULES - Bills 070006, 08 through make sure we don't lose them from your membership rolls.
No, but I also -- 5 but I also wanted to just state, you 6 know, for the record that at this time, 7 neither Foxwoods nor SugarHouse are 8 members of the Chamber. 9
Good afternoon. For my own clarity, what is the total membership of the Greater Philadelphia Chamber?
And you indicated in your testimony that most, and I quote, are small businesses. What percentage of that is small --
249 2/21/07 RULES - Bills 070006, 08 through About 85 percent? At any juncture during this process, to use Councilman DiCicco's words, was the Greater Philadelphia Chamber consulted? Were there any meetings with the initial four and now two prospective casino operators?
During the 10 process, we -- we met with, I believe, 11 all of the -- all of the proposed 12 operators, you know, to look at their 13 plans.
And those meetings yield what? Did you offer advice? I mean, you're in the business of business, but no one operates or lives in a vacuum. So was there any opportunity to enlighten the casino operators on the 250 2/21/07 RULES - Bills 070006, 08 through value of community input?
Absolutely. We 4 -- you know, we talked to them about the 5 importance of, you know, working with 6 communities. We talked to them about, 7 you know, our interest in traffic 8 remediation, you know, as a part of the 9 ultimate solution. 10
Because we recognize that, you know, the traffic along Delaware Avenue would be of a concern, no matter which of the sites were chosen.
So we -- you know, we talked to all of them about an interest in, you know, however their 251 2/21/07 RULES - Bills 070006, 08 through plans move forward, that, you know, community input was important and that traffic remediation was important. We made no decisions on, you know, which of the sites, you know, were to be chosen. We made no 8 recommendations. It was not within our realm.
But we did raise 13 those issues with each of the -- with each of the operators.
Councilman Clarke and members of the committee, my name is Delilah Winder, and I'm here on behalf of the African-American Chamber of 252 2/21/07 RULES - Bills 070006, 08 through Commerce of which I am the chair. I am also here to testify as a small-business owner and as an African-American business owner. The African-American Chamber of Commerce is the leading sector advocate for black-owned businesses in Delaware Valley. And as such, we have taken a very active interest in the introduction of gaming in our city. We cosponsored a gaming seminar with Wachovia Bank, the Philadelphia Tribune, and Kleinberg, Bell & Becker on September 8, 2005, and we attended the Gaming Control Board seminar titled "The Gaming Enterprise Diversity Forum Program" on September 29, 2005. Perhaps most importantly, we surveyed our members and found that a significant number were interested in doing business with casino owners. I believe that the introduction of gaming into our city represents not only an opportunity for business and 253 2/21/07 RULES - Bills 070006, 08 through 2 individuals across the city, it 3 specifically represents an opportunity 4 for minority-owned businesses. 5 When I assumed the role as 6 chair of the African-American Chamber, I 7 said that to thrive, African-American 8 businesses need to be recognized as a 9 prime and subcontractors. We didn't 10 need a piece of the pie; they needed one 11 hundred percent of the pie. I also want 12 to see more. 13 The Gaming Act requires casinos to strive for diversity at every level -- hiring, contracting, and procurement. Both of these casinos have submitted plans detailing how they will do so. I can think of no other industry that has done something similar in Philadelphia. In closing, please let me say that I know firsthand from my experience in running multiple food-service establishments for 22 years how hard it is to run and grow a business. These 254 2/21/07 RULES - Bills 070006, 08 through 13 new casinos, with their commitment to diverse contracting and procurement, represent an opportunity for African-American businesses, an opportunity that I believe will make us a stronger city, a city proud of business that represents a multicultural picture. We should not allow anything to delay this process. Please oppose these bills. Are there any questions?
Thank you, Mr. Chairman. My question is the same as it was for Mr. Mahoney. Did at any juncture in the process the casino operators seize the moment to sit down with the African-American Chamber of Commerce and discuss all of those relevant issues that have even come before us today? 255 2/21/07 RULES - Bills 070006, 08 through 2
Yes. We've sat down with both entities, and we've expressed to them our concern of having involvement at all levels of business. And they've expressed to us percentages greater and above than what we've gotten from any other project in the city since far. So the -- all the -- both casinos have committed to doing business with our businesses, in helping to grow and develop our businesses.
Is that to suggest then that they are willing to put in writing, for lack of a better word, a contract that clearly stipulates the extent to which they will honor whatever their promises are?
I feel comfortable that they would be willing to do that, yes.
Thank you, 256 2/21/07 RULES - Bills 070006, 08 through Councilwoman.
Good afternoon, 4 Councilman Clarke and other members of 5 the Rules Committee. My name is 6 Patricia A. Coulter, and I am President 7 and CEO of the Urban League here in 8 Philadelphia. 9 The National Urban League, of 10 which we are a local affiliate, is the 11 nation's older and largest community- 12 based movement devoted to empowering 13 African-Americans to enter the economic and social mainstream by helping them secure economic self-reliance, parity, power, and civil rights. We understand that the two casinos would create jobs for workers that come with benefits, and that they are committed to hiring Philadelphians. Critically as important to jobs, we support the development of the casinos to provide local companies and companies owned by women and minorities more procurement and contracting 257 2/21/07 RULES - Bills 070006, 08 through opportunities. Both of these casinos have committed detailed plans to the State Gaming Control Board, plans that we intend to hold them to ensure not just diversity in hiring but diversity in procurement and contracting. That's something that not enough companies in this region do. I believe as a city and as individuals, we need to do more to help create, support, and develop local companies and minority-owned businesses and recognize and support entities that commit to doing so. In addition to the jobs they will create directly and indirectly, the casinos would generate tens of millions of dollars for local government annually, including $5 million for schools. At a time when our schools continue to face a constant money crunch, additional revenue should not be dismissed. As we all know, education is 258 2/21/07 RULES - Bills 070006, 08 through 2 the key to a better future. In the 3 Urban League movement, we have a saying: 4 Our children equal our destiny. 5 The additional tax revenues can 6 also be used to revitalize 7 neighborhoods, improve job-training 8 programs, and to make our city safer. 9 It is not every day that an 10 opportunity like this comes along. We 11 should not delay in making it an 12 opportunity of a lifetime for all 13 Philadelphia citizens. Thank you very much.
Thank you for your testimony. Councilwoman Reynolds-Brown?
Good afternoon. Does the Urban League, the National Urban League, have any historical experience wherein the league was intimately involved with the startup of casinos in other municipalities in the country?
The Urban League 259 2/21/07 RULES - Bills 070006, 08 through per se does not have that experience, but if you know that our national CEO is Marc H. Morial, who is the former two-term mayor of New Orleans, and it was under his tenure in New Orleans that casinos did come to the City of New Orleans.
10 And so can one assume, then, that the 11 Urban League would be able to bring that 12 experience to bear should this become a 13 reality in Philadelphia?
Yes. In fact, I have talked to Mr. Morial about that, and we've talked specifically about contracting and procurement opportunities for people of color.
Have any of the casino operators approached the Urban League to discuss the need for community input, procurement opportunities, et cetera?
Yes. We have been approached by them, SugarHouse in 260 2/21/07 RULES - Bills 070006, 08 through particular. And we have also had a discussion about the procurement and contracting models that they might use.
6 Okay. Thank you again for -- thank you 7 all for your testimony. 8
Thank you 10 so much. Thank you. 11 Mr. McPherson? 12 MR. McPHERSON: Okay. The next 13 panel is Jim Paylor, International Longshoremen's Association; Renee Goodwin, Pennsport Civic Association; and Mary Reinhart. (Witnesses come forward.)
Councilman, I want to thank you for the opportunity. I feel honored to sit in front of you today and -- but I would like to start out with some humor, if I may, just so -- 261 2/21/07 RULES - Bills 070006, 08 through 2
Because people 6 will possibly be crying at the end of my 7 presentation. 8
If I may. 10 Following Jeff Benedict, okay, with his 11 knowledge about the social ills of 12 casinos is a tough act to follow, but I 13 have recently -- or not recently, but a few years ago, the opportunity to follow Congressman Abercrombie from Hawaii. I don't know if any of you ever heard him speak, but he's fascinating and amazing, and I got a tug on my jacket and was told I was next to follow him, and it was really a tough act to follow. What I intend to do today and, I will first plead your indulgence to give me the opportunity to tell you what our serious concerns are, number one, and fill you in with as much information 262 2/21/07 RULES - Bills 070006, 08 through as you feel is necessary. Some of the questions that have been asked by Councilman Kenney and others, okay, probably will be answered by some of the things that I have to offer. To try to start off on what's important and why I am here is, I represent the International Longshoremen's Association, of course, and those people are my constituents just as they are your constituents. I grew up in South Philadelphia, was born and raised there, and I attended a meeting last night at the Furness High School, which was my junior high school, okay, where 600 people attended a meeting, and they voiced very passionately their displeasure to what was happening in the city in regards to casino and other waterfront development, which I'll get into. And basically, they feel like 263 2/21/07 RULES - Bills 070006, 08 through 2 they've been part of a process that is 3 treating them with irresponsibility and 4 ignorance. It was quite clear at our 5 meeting. 6 What is a longshoreman? It's 7 someone who loads and unloads vessels, 8 for those who don't know, okay? And we 9 move cargo across the terminals. We're 10 in an industry that was being reduced 11 basically through automation over a 12 number of years. 13 The good news is that -- and I'm going to touch on this at the very end -- is that it's an industry right now that is thriving, and millions and millions of dollars are being spent in other maritime cities to accommodate the growth in cargo which creates job generation and tax generation, something that I'm sure you're very interested in. But who are the longshoremen? The longshoremen are a guy who shows up every morning not know whether he's going to go to work, and he's on call to 264 2/21/07 RULES - Bills 070006, 08 through 2 work 20 different starting times because 3 our jobs are based around ship arrivals. 4 And ship arrivals, they come, 5 and they make their money based on 6 filling or unloading our going and going 7 and getting new cargo and going through 8 their next destination. If we delay 9 that operation, then we -- we probably 10 will lose that cargo to other competing 11 ports. 12 We have a history of being the 13 most productive port on the East Coast. The result of that is we still have, even though people don't understand it or know it, we still have the highest market share of (indiscernible) cargos in the North Atlantic ports. We have approximately 300,000 containers that come from Packer Avenue alone. What that means is that there's 600,000 truck moves 'cause every one of those containers goes from the facility to a point of destination where they unload the cargo into another warehouse, 265 2/21/07 RULES - Bills 070006, 08 through 2 and then it's brought back and then 3 reloaded onto the vessel, okay? So 4 that's 600,000 truck driver moves during 5 the course of the year. 6 All of that is in jeopardy. 7 And why are we afraid of it? Very 8 simply, that our members -- and this is 9 where it gets into the serious part. 10 Our members, over the last few 11 years, have been asked to recognize some 12 of the inefficiencies in our port. 13 We've been asked to subsidize some of the inefficiencies in our facilities.
As a result, the longshoremen in the Port of Philadelphia -- and I included that in the presentation that I sent to Councilman DiCicco's office. I hope you all have it; if not, I could get you a copy. It shows that we have the lowest paid pension on the East Coast. It's something I'm not proud of but it was something that the regional economics dictated. What we did a few years back 266 2/21/07 RULES - Bills 070006, 08 through was recognize that we had to offset some of those inefficiencies, and by doing so, we froze our pension plan in 1996. We also asked our people to make major concessions. Some people took concessions of $6 an hour, okay, all done with the intention of bringing back our industry. Here's the good news. 2 million man hours. 9 million man hours and constantly growing. Recently, in the last few years, we've employed 300 new people that all come from the communities which you represent. Our pension fund is healthy at this point, okay, but even though we're not proud of it, it's healthy, but with the new Pension Reform Act, if we lose any one facility, okay, the funding that we require is based on all of the 267 2/21/07 RULES - Bills 070006, 08 through 2 facilities that are now working or 3 continue to work. That means the 4 pension that we are receiving right now, 5 even though it's at a low point, would 6 still have to be reduced most likely if 7 we lost any one of those facilities. 8 Now, when I get into what the 9 casinos will do to it, Jimmy -- or 10 Councilman Kenney, I'm sorry -- 11
Is that okay Jim? Okay, he asked a few questions. I asked those same questions, Jim. I've attended numerous meetings, okay, with PennDOT being present, with the Delaware Valley Regional Planning Commission, with the City Planning Commission. And the very questions you asked I asked: Was there any studies that were performed, including the ones that were performed by the casinos and PennDOT, that showed or determined what the 268 2/21/07 RULES - Bills 070006, 08 through impact would be on the existing businesses that are in our area, including and specifying, of course, the stevedore industry. And with some delay on answering the question, in all cases, the answer to that was no. 9 I asked them this question: Did any of the analyses that were performed include using the users of the port -- meaning the shipping lines -- or the stevedores themselves or the terminal operators? The answer to that was no. 16 So as a result, I asked for a meeting of the Philadelphia Marine Trade Association who represents the yard operators and the shipping lines. And we analyzed what was going on with the casinos and what would the possible impact be. Well we have Piers 38, 39, and 40, which are about three blocks north of the Foxwoods site. You have Pier 78, 269 2/21/07 RULES - Bills 070006, 08 through 2 Pier 80, Pier 82 and Pier 84, which are 3 a few blocks south, okay, of the 4 Foxwoods site. You also have the 5 annexes that store that international 6 cargo along those facilities along the 7 Delaware Avenue or, in this case, 8 Columbus Boulevard. 9 All of that cargo recognized by 10 the terminal operators is at risk 11 because the congestion, number one, that 12 Councilman Kenney has already alluded 13 to, will interfere with the service, of something that we have prided ourselves on. Getting the cargo going in and out of that facility with the congestion that already exists is a problem, but if it's going to be compounded by casino traffic, it's only going to get worse. The bigger problem, okay, is we all know if casinos are successful, once built at that facility, there will be encroachment onto the other industrial sites that will basically eliminate the 270 2/21/07 RULES - Bills 070006, 08 through 2 industry that we're working in right 3 now. 4 That being compounded, okay, 5 with this recent issue that has been 6 exposed, that the Governor wants to 7 float a $350 million bond, which you 8 would think we would welcome because 9 it's more capital improvements in our 10 industry, would also move the 11 Philadelphia Food Distribution Center to 12 the east portion of the Navy Yard. 13 If we are bookended by the Food Distribution Center, which is the only place where we have left to grow, and then also squeezed by the casinos, it will be -- and I'm not trying to exaggerate or dramatize. It will be the demise of the 45,000 jobs that are dependent on the waterfront. And people say, well how could it be 45,000 jobs? The International Longshoremen's Association is only 1,000 people, 2,000 pensioners. You have to look at the 100,000 271 2/21/07 RULES - Bills 070006, 08 through 2 or 200,000 truck drivers that go in and 3 out of our facility on a yearly basis, 4 you have to look at the warehouse 5 people. 6 And then last night at our 7 meeting, I was hit with something that 8 illustrates everything that people don't 9 recognize. I met a woman named Peg. 10 She introduced herself to me, and she 11 said, Thank you for fighting for my job. ), which is a shipping agent. So it shows the spillover of the industrial jobs into the white-collar jobs, okay, into Bunny's Cleaners at Third and Snyder, into the banks, and into your own barbershops. When 45,000 jobs are at risk because of a ill-fated or uninvestigated or lack of research plan or lack thereof plan and one family-sustaining job is lost, then that's a crime. If 45,000 jobs are lost, it's a holocaust. It can't be afforded.
The City 272 2/21/07 RULES - Bills 070006, 08 through can't afford it. Now, I know there's some dilemmas on the Councilpeople's part. They're probably saying, Well, how do I satisfy the transportation industry and how do I satisfy the building trades who are supportive of casinos? The total issue of the casinos should be defined as short-sighted for this reason. There can be a healthy mix. Even though we're longshoremen, we do recognize that the facilities along the middle Delaware River are obsolete for our purposes, but the industry can't be ignored. So we're looking for the opportunity to expand on an industry that, once again, is thriving. So what can we do? You have to find out what the casino said. What is compatible? ) 5
-- that our jobs 6 and the building trades jobs do provide. 7 Now, afterwards, a good 8 comprehensive plan, which the Penn 9 Praxis Group, which you delegated to go 10 out into the communities to design a 11 good, healthy environment for waterfront 12 development is recognized and 13 recommended. Once they get through the obstacles of trying to develop around casinos, and once they get through the obstacles of trying to design around a short-sighted $350 million bond issue for other port development, they then have to come up with their design. If they didn't have those obstacles, they then come up with a design that includes residential and includes commercial and includes recreational and includes the building 274 2/21/07 RULES - Bills 070006, 08 through of a much-needed maritime facility. Now, if the Martie facility is being built, it's going to be built by the building trades. If the industrial development is going to be built, it's going to be built by the trades. If the commercial development is going to be built, it's going to be built by the building trades. If the parks and the playgrounds that we want along the waterfront are going to be built, they will be built by the building trades. (Applause.)
What I'm saying to you, Councilman, is that a good, well-designed plan could be healthy, and it doesn't have to inflict pain on anyone, okay? And I think that's where we have to concentrate our energies. I've been sitting in positions where I've had your dilemmas, and the dilemma is very simple. If I have a political issue that creates conflicts with the merits of an issue that creates 275 2/21/07 RULES - Bills 070006, 08 through conflict, how do I resolve that and satisfy everybody? My father told me, when I first got elected to this job, "You're going to wind up in that position of conflict, and here's how you determine it." He said, "You ask one key question to yourself: Is it healthy for you?" But, he said, more importantly, "Once you're elected to represent your constituents, you have to ask yourself this question: Is it healthy for my constituents?" And once you resolve that conflict, okay, there is no longer a conflict. And I say to you that when you analyze everything that you have to analyze as far as casinos based on compatibility and social ills, there is no other issue. It's what healthy for the people that I represent, and the casinos don't provide a healthy alternative to anything that we've already talked about. 276 2/21/07 RULES - Bills 070006, 08 through 2 (Applause.) 3 (Cheers.) 4
Also, I was told, 5 you have to apply common sense to things 6 that somewhat seem complicated and are 7 not really complicated. And I'm not a 8 urban engineer, but because of my 9 position, I have had the opportunity to 10 travel through many maritime ports in a 11 lot of different cities, including Las 12 Vegas, and here's what I do know: 13 I do know that the casinos that are built around this country, okay, did have some foresight, one by a gentleman called Bugsy Segal. He said there's a controversial issue of gaming -- where do I put it where nobody don't care about it? So I put it in the middle of a desert, and if people want to come to it, they'll come to it. Okay, and that's where Las Vegas was born. The other casinos that are in our country are in the middle of the wilderness. You go out to Lake Tahoe, 277 2/21/07 RULES - Bills 070006, 08 through you have to travel great lengths to get to the casinos. The other casinos are in places like New Orleans, okay, and I'm talking pre-Hurricane Katrina, and that casino was in the middle of an area that was run down, buildings were vacant, and there was no other growth, and they needed something to spark rejuvenation. The other one which I think was referred to here is in the city of Detroit, a municipality similar to our own, but it was put in an ares where there was no other progress, no other development, and no vibrancy. Casinos are being put in our area, which you all know -- Jimmy already referred to it -- are in an area that right now are congested. There's commercial development, there's people moving into the industry. And you have the working-class people who have been there for many, many years saying, I want to stay here, 278 2/21/07 RULES - Bills 070006, 08 through 2 okay? Please help me with my social 3 structure. Don't let it erode because a 4 few people will get rich at the expense 5 of working-class people. 6 I hope that you will 7 consideration what I say, and I thank 8 you for the opportunity. 9 (Applause.) 10 (Standing ovation.) 11 (Council President Verna bangs 12 gavel.) 13
Madam Chairman, if I may offer one more thing that I think will give a lot of insight. If we were just complaining about this development, I could see some people say we were a special-interests group. We are preparing to propose to the Philadelphia Regional Port Authority on March the 2nd -- it's a plan. It's a plan that will show how we go from 300 million containers -- I'm 279 2/21/07 RULES - Bills 070006, 08 through sorry -- from 300,000 containers to 3.5 million containers. Our industry last year paid $43 million in taxes to the City and State government, with 300,000 containers. If we take it to 3.5 million, can you imagine the tax revenue that the City will -- will generate? So in response to the casino who said, "We're the only solution to your problem," what is happening in our community right now in the maritime industry has never been seen before. The teachers' pension has just invested $2 million to purchase a stevedoring company, $2 million. American International Global Investment Company has just spent $2 billion, okay, of their money to buy P&O Court -- that was the Dubai Port travesty. They just spent $40 million just to be licensed to work in New York. They're an investment company, and what they're saying is that we're not 280 2/21/07 RULES - Bills 070006, 08 through 2 changing anything. The maritime 3 industry is where the money is right 4 now, okay? 5 My concern is Philadelphia is 6 closing the doors to something that 7 could replace any need for casinos. 8 Thank you. 9
Thank 10 you. Thank you very much. 11 (Applause.) 12
Good 13 afternoon. Please identify yourself for the record.
Yes . My name's Rene Goodwin, I'm a member of the Board of Pennsport Civic Association, Chair of Riverfront Communities United, and a member of Delaware River Neighborhood Alliance. Thank you for the privilege to come here and speak to you today. My remarks are, first of all, to support the ordinances, the various bills and ordinances introduced by Councilman 281 2/21/07 RULES - Bills 070006, 08 through DiCicco. My remarks are addressed mostly to the fact that I am opposed to the casino sites and specifically Foxwoods only because it is the one I am most familiar with; although the facts that I will touch on, I think, are relevant to both sites. Fiction: A casino will enhance the value of an area. 6 drop in value when a casino moved into the neighborhood. That is with a buffer of 2,000 to 5,000 between the properties and the casino. At Foxwoods, the buffer is 480 feet. 6 reduction in value in the neighborhood in this area is a dollar amount in excess of $109 million, and that does not even take into consideration the accelerating real-estate prices even in a somewhat smaller market in the Queen Village, 282 2/21/07 RULES - Bills 070006, 08 through 2 Society Hill, and Pennsport areas. 3 Fiction: Casinos will generate 4 revenue in the form of tax revenue. 5 Fact: Foxwoods has not agreed 6 to forego the ten-year tax abatement 7 and, I understand, have not yet paid 8 this year's current real-estate taxes on 9 the property, which exceed a million 10 dollars. 11 Fiction: Foxwoods will donate 42 percent of its profits to designated charities. Fact: Family charitable foundations are a way of preserving personal wealth, and they reduce significantly the tax burden on such wealth. For example, if one leaves a $100 million estate covered by a foundation, virtually no inheritance taxes would be paid. You will have saved your heirs a mere 47 percent or $47 million. Fiction: Foxwoods' traffic 283 2/21/07 RULES - Bills 070006, 08 through 2 mitigation plans, which include a new 3 I-95 ramp will address existing and 4 newly-generated traffic congestion and 5 will reduce congestion by an approximate 6 30 percent. 7 Fact: A federal consent decree 8 prohibits the building of additional 9 I-95 ramps between the Ben Franklin 10 Bridge and the Walt Whitman Bridge. 11 Fact: According to Delaware 12 Valley Regional Planning Commission, as 13 a result of additional traffic, quote, there will be adverse impacts to the local communities and infrastructure. Forty percent of casino-generated traffic will use local roadways. Big-box retail stores contribute to the congested nature, and the proposed traffic generation from this site will have increased problems. Fact also: Some of the mitigations that Foxwoods has consistently proposed are relatively simple steps that can be implemented 284 2/21/07 RULES - Bills 070006, 08 through 2 right now by the City of Philadelphia 3 and PennDOT. 4 Fiction: The Pennsylvania 5 Gaming Control Board adjudication report 6 of February 1, 2007, states neither 7 Philadelphia entertainment, nor any of 8 its affiliates, including the tribal 9 nation, own any interest in any casino 10 located in Atlantic City. 11 Fact: According to the 12 Associated Press, the Mashantucket 13 Pequot Tribal Nation and MGM Mirage have discussed building on a 14-acre site in Atlantic City. This was never disclosed. Fiction: The casinos will create jobs. Fact: Yes, most of which are $9 an hour. I heard Foxwoods representatives state in front of a group of people that for most of the upper-management jobs, consideration would be given to in-house personnel 285 2/21/07 RULES - Bills 070006, 08 through 2 because that is their policy. 3 Fiction: Casinos will generate 4 revenue. 5 Fact: They don't generate 6 anything; they take from other sources 7 by drawing in persons to gamble with 8 monies that would be used for food, 9 clothing, rent, and so forth.
10 Additionally, an increase in 11 crime results, with an average increase 12 of $34,000 per year, which is what is 13 spent by the State on correctional institutions, $34,000 a year a person for every person who is incarcerated. We should count on at least the 17 percent increase in crime. Fiction: The design of the casino will make it a destination, a waterfront destination, and develop an area in need of development. Fact: According to the current situation, the two casinos are not in control of riparian rights; and contrary to what the gentleman said from 286 2/21/07 RULES - Bills 070006, 08 through Foxwoods, the review that we have made of the riparian-rights maps indicates that approximately one-third of their 5 acres would be negatively affected by 6 the loss of riparian rights. 7 In fact, to go further, on 8 November 14th, at the Pennsylvania 9 Gaming Control Board hearings, the 10 Foxwoods representative said that 11 although they'd like to have them, they 12 are not sure they really want them 13 because it would be so costly to develop on the waterfront, and without the riparian rights, they can actually increase the size of their casino by 30 percent. I'm assuming they're talking about building up. Fiction: It's a done deal. Fact: Maybe not. )
The 287 2/21/07 RULES - Bills 070006, 08 through Chair recognizes Councilman Kenney.
Thank you, 4 Madam President. 5 I appreciate both your comments 6 so far and applaud you for being here. 7 One of the issues -- I mean, 8 it's -- obviously, this legislation is 9 an attempt to kind of redefine the 10 conversation and slow things down or 11 stop 'em, whatever, whatever we finally 12 come up with. 13 One of the ways to slow this down is the agreement that no 15 riparian-rights bill would be introduced in Harrisburg by any House member or any Senate member. Has your coalition taken a position formally?
Yes. In fact, the letters are just about to go out, signed by -- or signed by signatures representing all of the community groups who agreed to that, letters asking all of the Senators, members of the House, 288 2/21/07 RULES - Bills 070006, 08 through the Governor, the Attorney General, just to --
Are those 5 letter coming from the coalition or 6 coming from each individual civic 7 association? 8
Both. Yes, our 12 letters have actually already gone out. 13
And the letter requests not only that legislation regarding riparian rights and associated parcel not be introduced, but that any other legislation that would be accommodating or friendly to the casinos not be introduced.
Could you, if possible, get the committee copies of those individual letters --
-- from 289 2/21/07 RULES - Bills 070006, 08 through your civic association and from any other groups, okay?
Good 11 afternoon. Please identify yourself for 12 the record and proceed with your 13 testimony.
Hello. I'm Mary Reinhart, and I live in Pennsport, and I'm here simply to talk on my own behalf because I want to tell you that I live a two-minute walk away from the proposed Foxwoods site. And so on December 20th, when I heard that they had been granted a license, I was stunned and I was sickened. And, in part, I was feeling that way because I was there in 290 2/21/07 RULES - Bills 070006, 08 through Harrisburg on November the 14th, when Foxwoods made its presentation to the Gaming Board, and I actually heard their spokesman say that they plan to put an offramp over Front Street and to widen Front Street to the west to accommodate the traffic. And I live right there. And if they widen Front Street to the west, dozens of houses and buildings will go down before a bulldozer. And this stunned me, this upset me. I'm furious about it. The spokesman there was as cool as a cucumber as he talked about our fate, and the Gaming Board was mute. They followed up with no questions. They simply accepted calmly and placidly, apparently, the fact that these casinos will do these vile things to our neighborhood. If people choose to spend their time gambling, to spend their money gambling, you know, that's really their 291 2/21/07 RULES - Bills 070006, 08 through 2 business. But it's my business when the 3 State wants to drop these slot parlors 4 into my neighborhood to corrupt it, to 5 destroy potential jobs, to take our 6 homes. Then it's my business, and I'll 7 do anything to stop that. 8 (Applause.) 9
I've 10 demonstrated, I've blocked traffic, I've 11 written to the newspapers, I've written 12 to State Representatives, to the 13 Governor, I've written to you, I've collected hundreds of signatures on a petition to put this question on the ballot. I'm even here testifying in front of you in a T-shirt in this beautifully elegant room so that you can see that I'm prepared to do almost anything to stop this. And I hope that I won't have to stand in front of bulldozer to stop that bulldozer from tearing down my 1860s house. And so I'm prepared to do that, 292 2/21/07 RULES - Bills 070006, 08 through but I hope I don't have to. I'll also be in the voting booth on May 15th supporting all of you who help us. So I'm helping you. (Applause.)
Frankly, 8 frankly, I'm pleading with you now to 9 use your zoning-rights abilities to keep 10 this corruption away from our doors. 11 Thank you. 12 (Applause.) 13
Thank you very much. The Chair recognizes Councilman Kenney.
I just -- I want to bring to your attention a legislative nuance that's important to understand when it comes to Harrisburg.
In January, when the members of the State House were sworn in, it's quite a different situation now. 293 2/21/07 RULES - Bills 070006, 08 through 2
Okay? The 7 people who represent most of 8 Philadelphia in the House are Democrats. 9 In the past, any piece of legislation 10 that would be introduced by a Democrat 11 from Philadelphia in the House 12 controlled by the Republicans was most 13 likely to ever see the light of day. That has changed. We have a different Speaker of the House, we have different chairmanships of all of the committees. So anything that's introduced in the House to slow this up or to change this or to make this better will see the light of day because the Democrats are in control. Now, when it gets to the Senate, it's a different story because the Republicans still control it, and the Governor supports gaming, so it -- 294 2/21/07 RULES - Bills 070006, 08 through but the point is that if you can get a piece of legislation to the floor, which you can in the House of Representatives, because of the change in leadership, that is another arrow in our quiver to try to do something the right way. So you got to really stay on your State House members to move legislation through, because they have the authority now to do it. They've all moved up in seniority, they're all heads of committees now, and it's easier to get something on the floor of the House than it is the Senate.
Thank you. (Applause.) 295 2/21/07 RULES - Bills 070006, 08 through 2
Mr. McPherson? MR. McPHERSON: The next panel consists of Joe Dougherty and Sam Staten.
Joe 8 Dougherty and Sam Staten? 9 (Witness comes forward.) 10
Would you please identify yourself for the record and proceed with your testimony.
I'm Ryan Boyer, Secretary-Treasurer of Local 332. Mr. Staten could not be here so I'm here in his stead to read his testimony. Madam Chairwoman and members of the committee, again, my name is Ryan Boyer, and I'm the Secretary-Treasurer of Local 332, and I thank you for this opportunity to appear before you with my brothers and sisters in the union 296 2/21/07 RULES - Bills 070006, 08 through movement to discuss the importance of the casino construction projects which are coming to Philadelphia. As many of you may know, my local is primarily made up of African-Americans who live in Philadelphia. In fact, many of them live in the very neighborhoods where these casinos will be built. For them and all other members of my local, gaming offers a unique opportunity, an important economic opportunity. It's an opportunity to obtain union jobs in both the construction and hopefully the operation of casinos, which offer meaningful, liveable wages, significant benefits, and a real chance to both support a family and maintain hope for the future. Not only will these project create hundreds, and eventually thousands, of new jobs, but they will also pump hundreds of millions of dollars back into the City and the 297 2/21/07 RULES - Bills 070006, 08 through 2 State, a portion of which will be used 3 to reduce our city's wage taxes, which 4 is an important issue for our members. 5 Moreover, an issue which has 6 gotten lost in the arguments is the fact 7 that some of these taxes will be used to 8 support the expansion of the 9 Pennsylvania Convention Center, another 10 critical source of new jobs for both my 11 members and the City of Philadelphia. 12 The gun violence which 13 permeates our city, and in particular our minorities neighborhoods, is a serious problem which weighs heavily on everyone in this room. While there is no magical single solution to this unrelenting problem, the training for the creation of real jobs which produce hope rather than despair has got to play a significant role in any resolution. These casinos projects create real potential to create significant jobs and long-term hope for many. It is rare for a building (indiscernible) 298 2/21/07 RULES - Bills 070006, 08 through 2 industry to come to Philadelphia and 3 announce that it is prepared to create 4 thousands of new jobs in both 5 construction and operation of these 6 facilities. 7 For my members, these casinos 8 projects are not abstract arguments, 9 which are the subjects of editorials and 10 long legal briefs; rather, they provide 11 meaningful and tangible opportunities to 12 take real steps toward economic security 13 for the future. In the world I live in, these types of economic engines are too far and few between. As elected representatives with the responsibility to all citizens of this great city, we should embrace these opportunities rather than seek to delay them at every turn. Every casino executive has publicly committed to creating economic opportunity for those individuals and small businesses particularly in the minority communities who are often left on the outside 299 2/21/07 RULES - Bills 070006, 08 through 2 looking in. In addition, they have 3 vowed to be good neighbors, both to the 4 neighborhoods surrounding them and the 5 City overall. 6 If they fulfill these 7 commitments, it will be good for them 8 and great news for Philadelphia. For 9 their benefit and ours, they deserve the 10 opportunity to try. 11
Thank 12 you very much. We appreciate your 13 patience. Thank you. I would ask Mr. McPherson to please call the next panel. MR. McPHERSON: Jeff Rush, Richard Wolk, Kathy Dilonardo. (Witnesses come forward.)
My name's Jeff Rush and I am president of the Queen Village Neighbors Association. (Interruption.)
Good afternoon, Madam President, Councilman DiCicco, and other distinguished members of City 300 2/21/07 RULES - Bills 070006, 08 through Council. My name is Jeff Rush. I'm President of the Queen Village Neighbors Association and a charter member of the Delaware River Neighborhood Alliance. I'd like to thank Councilman DiCicco and all of you for allowing us the opportunity to speak with you this morning. This is not the first time I've appeared before City Council. You may know me. I'm a 25-year resident at Old Swedes' Court at Delaware and Christian Street. And you may recall the last time I appeared before this august body was to ask for residential zoning for the site previously occupied by Philly Ship and the infamous chicken slaughterhouse across from Swedes' Court. Your approval enabled the construction of 50 new townhomes and an end to a hundred years of blight. We are ail witnesses to a remarkable period of development in many 301 2/21/07 RULES - Bills 070006, 08 through 2 areas of our great city. Nowhere is 3 this more evident than in Queen Village. 4 The vibrancy and diversity of our 5 community is the cumulative result of 6 thousands of homeowners and businesses 7 who have worked hard for many, many 8 years creating a truly great 9 neighborhood, one that I am proud to 10 call home. As a result, we and our 11 neighbors to the north and south are 12 rapidly helping to rebuild 13 Philadelphia's tax base. But the trust in our political leadership engendered by such enlightened local-government actions as the rezoning of Philly Ship -- excuse me -- and the slaughterhouse properties is now in jeopardy. That's because without transparency or adequate consultation, State authorities and their agent, the Pennsylvania Gaming Control Board, have highjacked our rightful participation in the decision-making process, and 302 2/21/07 RULES - Bills 070006, 08 through 2 selected totally inappropriate sites to 3 locate slot parlors in our 4 neighborhoods. 5 Swedes' Court and Gloria Dei 6 Church across the street from it are 7 only three blocks south of the double 8 slide-under ramp that would service the 9 Foxwoods Casino that the State would 10 site just three blocks down Columbus 11 Boulevard. 12 The result in traffic will 13 absolutely overwhelm Columbus Boulevard, not to mention Christian Street and Washington Avenue, which are gateways to Queen Village and Pennsport. As you are no doubt aware, we are already inundated with the traffic from Ikea and the other retail developments to the south. The threat of an additional estimated 50 to 60,000 visitors a week descending in and through our streets would have an immeasurable negative impact on our way of life. 303 2/21/07 RULES - Bills 070006, 08 through 2 I am here to tell you, this is 3 not acceptable. I do not believe that 4 City Council wants to, or should, 5 abdicate or otherwise abandon its 6 responsibility to Queen Village or any 7 other neighborhood in the City. 8 The State has systematically 9 stripped Council's rightful 10 decision-making power on behalf of its 11 residents and business-owners in the 12 strongest possible terms. 13 We urge Council to take back its power. Continue to refuse zoning to predatory gambling operators. Force the State, by any means, to allow Philadelphia to choose whether or where to site any slots parlors. Continue to support Councilman DiCicco's proposals that will save our neighborhoods. And, finally, support our request for a referendum signed by nearly 28,000 tax-paying residents of the City of Philadelphia, and put the question of slots parlors on the May 304 2/21/07 RULES - Bills 070006, 08 through 2 primary ballot. 3 (Applause.) 4
And, finally, be the 5 strong, committed City Council doing 6 what it was elected to do. 7 Represent the best interests of 8 the citizens of Philadelphia. And by 9 doing so, restore our faith in equity 10 and justice. 11 Thank you. 12 (Applause.) 13
Thank you. Good afternoon. Please identify yourself for the record.
Good afternoon, Madam President and members of City Council. Thank you for the opportunity to speak at this hearing. I'm Kathy Dilonardo. I have lived in Queen Village for 32 years. During that time, I've worked for the National Park Service at Independence National Historical Park 305 2/21/07 RULES - Bills 070006, 08 through and in the northeast regional office as the Chief of Visitor Services before I retired last year. My husband and I have a son who's a senior in high school. I'm a member of the Queen Village Neighbors Association Committee on Casinos and their impact, and so I've been doing a lot of reading on the effects of casinos -- books, news articles, studies by universities, and reports by state governments. And no matter what I've read, nothing that I've read is positive. No 16 matter what I've read, the numbers, the conclusions, the data were all very similar -- equally horrific -- and have far-reaching effects on our community. Data from gambling communities across the country indicates that gambling fosters a significant increase in crime. S. News and World Report analysis found crime in casino communities to be 84 percent higher than 306 2/21/07 RULES - Bills 070006, 08 through 2 the national average, and Philadelphia's 3 already well above the national average. 4 Court cases in the Mississippi 5 County, host to a large casino complex, 6 went from 689 a year to 11,100 five 7 years later. That's a 17-times increase 8 in court cases. 9 Police calls quadrupled in 10 Ledyard, Connecticut -- that's the town 11 adjacent to the Foxwoods Casinos -- from 12 4,000 to 16,700 five years later, four 13 times as many calls after Foxwoods opened. So imagine four times the number of calls for the Philadelphia Police Department. A lot of those increased calls and crime would take place in Queen Village, Pennsport, and Society Hill. Our concerns deepen when we read about the unseen but, nevertheless, real damages casinos will do to our communities. Adolescent gambling increases dramatically. Almost 307 2/21/07 RULES - Bills 070006, 08 through 2 two-thirds of Atlantic City high school 3 students have been in the casinos in 4 Atlantic City. 5 Suicide rates go up. Atlantic 6 City found that abnormally high suicide 7 levels for residents and visitors 8 appeared only after casinos opened 9 there. Nevada has had the highest 10 suicide rate for more than ten years, 11 both residents and visitors. 12 Bankruptcy rates have reached 13 record levels in the country despite a relatively robust economy. States report that the counties in which casinos are located have the highest rates of bankruptcies in their respective states, including Iowa, Tennessee, Maryland, California, New Jersey, et cetera, et cetera. The study of the personal bankruptcy crisis, which is related to no gambling interests whatsoever, pro or con, says that it now appears gambling is the single fastest-growing driver of 308 2/21/07 RULES - Bills 070006, 08 through 2 bankruptcy. 3 Divorce rates, child abuse and 4 neglect, domestic violence, gambling 5 addiction, and job loss all increase in 6 communities that have casinos. After 7 the casino arrived in Harrison County, 8 Mississippi, divorces are up by 850 each 9 year. 10 At Foxwoods in Connecticut, 11 authorities have had to put up signs in 12 the casino parking lots warning parents 13 not to leave their children in cars unattended. What kind of parent needs a sign to remind them of that. As Jeff Benedict noted, before Foxwoods and a second casino appeared in Connecticut, the state had one gambling-addiction center; now it has 17. And one last point about jobs. Casinos don't create new revenue; their revenue is cannibalized from other businesses where the money would have been spent if a casino were not 309 2/21/07 RULES - Bills 070006, 08 through 2 available. Gamblers spend 10 percent 3 less on food and 25 percent less on 4 clothing.
5 The job casinos create are 6 real, but one job figure casino 7 companies don't advertise is that for 8 every three slot machines, we will lose 9 two jobs in the economy that hosts the 10 casino. That is due to the $100,000 per 11 year per slot machine that will not be 12 used somewhere else in the economy. 13 And for every dollar of casino revenue going to the State, $3 will be spent on the social-service needs created by the casino -- the added addiction centers, the court-appointed lawyers, unemployment, welfare, counseling, prison, et cetera. That's $2 more the State has to find. All of the money that casinos give to the government in revenue cannot offset the tsunami of economic and human devastation their presence ignites in the community. It's folly to think that 310 2/21/07 RULES - Bills 070006, 08 through we will be immune. We need for you to work together to find ways to keep casinos out of not only Queen Village but all of Philadelphia's neighborhoods. Thank you. )
Good 10 afternoon. Please identify yourself for 11 the record. 12
My name is Richard 13 Wolk, and I'm a member of the Board of Directors of QVNA, Queen Village Neighbors Association, and the Delaware River Neighborhood Alliance. And today, I represent the new people who are moving into the City and why. Madam President and Councilmembers, I thank you for this opportunity to voice my support for Councilman DiCicco's bills that are before you today. Almost four years ago, my wife and I moved to Queen Village, after 311 2/21/07 RULES - Bills 070006, 08 through spending months looking at properties throughout the City. We chose Queen Village because it is truly a village within a large city, an historic village comprised of rowhouses, many of which are the oldest structures in our city, some inhabited by five- and six-generation families. The historic significance of Old Swedes' Church adds a testament to the Swedish immigrants who settled here before even William Penn. The Shot Tower, one of only two still standing in our nation and its significance to the War of 1812. The houses and factories along Front Street are a testament to the earliest merchants and workers who came off the ships and settled here. All of this history facing the Delaware River, a stone's throw from where a casino might be built with its massive, windowless boxes and garish neon signs. 312 2/21/07 RULES - Bills 070006, 08 through 2 What is it about Queen Village 3 that my neighbors and I love? It's the 4 diversity and community of my neighbors. 5 It's the pleasure of walking its 6 historic streets. It's the 7 accessibility by foot to wonderful 8 dining, shopping, culture, and to the 9 Delaware River itself. It's the green 10 parks, community gardens, and the 11 playgrounds. 12 We have a community that is 13 involved and works tirelessly to preserve the heritage of our village. Even the quality of the neighborhood's public grade school has remained one of the best because of active parent-teacher involvement, and that is quite something to say in Philadelphia. Philadelphia is a city that thrives on tourism based on its historic place in the formation of our country. Families far and wide bring their children here to see where it all began. Visitors from foreign lands come to 313 2/21/07 RULES - Bills 070006, 08 through 2 Philadelphia to experience the Cradle of 3 Liberty. 4 Families, I repeat, families 5 are the backbone of Philadelphia 6 tourism. 7 (Applause.) 8
They stay at our 9 hotels, eat at our restaurants, and shop 10 at our stores. 11 Las Vegas is the perfect 12 example of where gambling and family 13 entertainment does not mix. It started out as the Sin City, spent millions, millions trying to turn it into a family resort; it did not work. You've heard their slogan, "What happens in Vegas stays in Vegas." Do we want this to be Philadelphia? Queen Village is a quiet, wonderful neighborhood. At community meetings, unfortunately, people who have been here for years talk about moving their families out if the casinos come. Please, please help us save 314 2/21/07 RULES - Bills 070006, 08 through this historic jewel for future generations who may not have the opportunity to see how people lived in the 18th and 19th century. Thank you very much. (Applause.)
9 You're welcome. Thank you. 10 Are there any questions of 11 these witnesses? 12 (No questions.) 13
Thank you. Mr. McPherson, would you please call the next panel. MR. McPHERSON: Rick Levins, Eric Rudy, Phillip Bogaten, Dave Dowling. (Witnesses come forward.)
Good afternoon, Madam President and members of Council. My name is Richard Levins, a lifelong Philadelphian and a resident of Fishtown for the last 25 years. My wife and I 315 2/21/07 RULES - Bills 070006, 08 through 13 have raised my family -- two daughters -- in Fishtown. Thank you for holding today's hearings on this important topic of casino zoning and for allowing me to testify. Thank you also for your leadership on important zoning issues affecting Philadelphia. With your attention to planning and economic development, our city has undergone a major transformation this decade that has strengthened Philadelphia's position as a world-class city. As chairman and president of the New Kensington Community Development Corporation, coach for the Fishtown Athletic Club, and participant in other neighborhood organizations, I spend a considerable amount of time volunteering in my community. Today, however, I testify as an individual who lives just a few blocks from the SugarHouse Casino site, and my 316 2/21/07 RULES - Bills 070006, 08 through remarks pertain to this project. At one time the SugarHouse site housed the Jack Frost Sugar Refinery. For generations, Jack Frost served as a major employer for the neighborhood. Nearby residents could walk to work, earn an honest pay, and receive company benefits that could help raise a family. Unfortunately, Jack Frost went the way of other factories along its Delaware River. After closing, Jack Frost became a rat- and trash-infested eyesore, and it continues to this day to be a barrier to the river. As one would expect, the proposal for SugarHouse has spurred healthy debate in our neighborhood regarding the future of the waterfront and its impact on residents. While neighbors are concerned with increased traffic and the drain on existing city resources in the vicinity, they also see the casino as a contributor to the local economy and a means to improve their 317 2/21/07 RULES - Bills 070006, 08 through 2 family's quality of life. 3 Many of the residents I have 4 spoken with expressed their view that a 5 casino will bring many positive 6 developments. They see opportunity to 7 walk to a full-service restaurant, to 8 see a show, and enjoy a view of the 9 river. 10 They see opportunity for 11 employment for themselves and their 12 children. They see opportunity to 13 receive a fair wage, to obtain solid health benefits, and advance the City's growing hospitality industry. Local merchants also see opportunity for local vendors such as flower shops, bakery, dry cleaners, and other small businesses to expand their operations in our neighborhood. These are not the type of opportunities that are afforded by high-rise gated communities that offer increased traffic congestion while denying waterfront access and other 318 2/21/07 RULES - Bills 070006, 08 through 2 economic benefits that a casino would 3 yield. 4 In my various volunteer roles, 5 I have seen firsthand the challenges 6 that many families face when they are 7 trapped in low-paying jobs that offer no 8 health or life insurance benefits. 9 Many times, these Fishtown and 10 Kensington families cannot afford the 11 $45 registration fee to enroll their 12 child in a sports team that plays on a 13 rock-and-cinder field. Sometimes they cannot pay their heating bills or afford decent housing. Often, members of these families work jobs -- corner store by day, bartending at night, and odd jobs when they can get them. Many of these families speak of "the good old days" not too long ago when their parents worked at the American Can Company at the old Sugar House and other neighborhood manufacturers. To these families, a 319 2/21/07 RULES - Bills 070006, 08 through 2 casino means jobs and the prospect of 3 not having to leave their neighborhood 4 to secure decent employment.
5 It also means having a 6 reputable business that is willing to 7 give back and work as a partner with the 8 community to ensure its future 9 prosperity. 10 Again, thank you for holding 11 these important hearings on this topic. 12 As you consider legislation to amend 13 Philadelphia's zoning laws, I ask that you take care not to prevent responsible business enterprises from making investments that will strengthen the fabric of our neighborhoods while building upon Philadelphia's role as a world-class convention and tourist destination.
The Chair recognizes Councilman Greenlee. 320 2/21/07 RULES - Bills 070006, 08 through 2
Mr. Levins, just a quick question, if I could. I take it by this, you have had conversations with the SugarHouse people; and if so, how have they gone?
I started 11 interactions with the SugarHouse Casino 12 along with several other community 13 residents early last year, probably February, April. And I can say that every time we called them to any meeting, they were there. And I can actually compare the relationship that we had with the SugarHouse applicant to the Pinnacle applicant, and it was night-and-day. The Pinnacle applicant, with a lot of notice, came unprepared to every meeting, made to commitment to the community in any way, shape, or form. Whereas, the SugarHouse, as early as 321 2/21/07 RULES - Bills 070006, 08 through last April, sent us a detailed letter with a detailed commitment, financial and otherwise.
Okay. 6 And do you think, as time goes on, you 7 could reach a real community agreement 8 with them? 9
Okay. I know the other residents from there too, but I just wanted to get that on the record. Thank you.
Thank you. Any other questions from members of the committee? (No further questions.) 322 2/21/07 RULES - Bills 070006, 08 through 2
Good afternoon. 5 I'm Philip Bogaten, and I've been born 6 and raised in Philadelphia. 7 I've had my own business in 8 Philadelphia for the past 60 years, and 9 I bought the real estate north of Spring 10 Garden Street to Shackamaxon for the 11 last 30 years. 12 And most of the properties that 13 I bought were abandoned, as this gentleman explained. And over the years, I have spent millions of dollars to rehab all those properties so that now it's a wonderful neighborhood. I own Building 1080 North Delaware Avenue. It was -- I brought a picture to show you, if you would like to see what it looked like, and now there's millions of dollars that have been spent, there's hundreds of people that work in the property, and it's a wonderful neighborhood. 323 2/21/07 RULES - Bills 070006, 08 through And we're right across the street from the SugarHouse, and it's going to be marvelous to bring in and rebuild that whole area. As a matter of fact, here's 1450, which is part of the SugarHouse, which is anticipating two condominiums to be built on that area, which is absolutely going to be magnificent. So I really encourage the Council to consider favoring the SugarHouse. Thank you.
Hi. My name is Eric Rudy. I'm a resident of Fishtown since 1991, and I've been involved with Fishtown Athletic Club since 1998. 324 2/21/07 RULES - Bills 070006, 08 through Since then, I have started out as a parent, became a coach, soccer director, and treasurer of Fishtown Athletic Club, and that's where I am right now, in all four of those capacities. Being involved about eight years ago meant the 10- and 12-year-olds that I worked with are now at the age where they'd be looking for jobs, and they're not finding a lot of jobs in the area that are high-paying that are 40 hours a week, provide health benefits, and so on. Being with the club for eight years, I've seen also that we have registration fees that are, in large part, covered by people in the community and by businesses in the community. A lot of the mom-and-pop stores that we had years ago have, with the increasing values of the houses and with the bigger stores, the chains like Home Depot and places like Applebee's, you 325 2/21/07 RULES - Bills 070006, 08 through 2 know, a lot of the mom-and-pop stores 3 are no longer. They've either been put 4 out of business or they've sold out at a 5 good value as our housing values went 6 up, but these are a lot of jobs that 7 have moved out. 8 In this last registration for 9 baseball, it will cost us about $125 to 10 outfit one player for baseball. We're 11 only charging $65 for that, and that's 12 because we hope to get $40 for each 13 person playing baseball or softball. We're hoping to get donations that will offset that. We may fall short; the last couple years we have. Our balance has -- has gone down really low. It now is in danger. If we put registration fees up where they should be, we're going to be losing a lot of players. We're going to have a lot more kids that will not be able to play for the club. They're going to lose a lot of experiences, they're going to lose those values that you learn 326 2/21/07 RULES - Bills 070006, 08 through 2 through playing athletics. 3 Last spring, I met with Ken 4 Snider. He was touring around, looking 5 at what is going on in the community. 6 He met with us at the club and got to 7 know, like, what our needs were and what 8 we'd like to see. 9 If casino gambling does come to 10 our area, we would love to see a 11 community-benefits agreement that will 12 help stabilize the neighborhood, 13 stabilize our charities such as ours -- we're nonprofit, something that will give us a lot of control on how we can see the benefits of the casinos, you know. So I think that's it.
Thank you very much. We appreciate your patience in staying to testify. Thank you so much. Any questions? (No questions.)
Thank 327 2/21/07 RULES - Bills 070006, 08 through you, gentlemen. PANEL: Thank you.
5 Mr. McPherson? 6 MR. McPHERSON: The next panel 7 consists of Joe McNulty, A.J. Thompson, 8 Matt Ruben, Matt Pappajohn, Katie 9 Recker, Laura Lance. 10 (Witnesses come forward.) 11
Good afternoon, members of Council and Chairwoman Verna. Thank you for the opportunity to speak today. My name is A.J. Thompson and I'm a member of many things but I'm here today as a father and a husband. And I'm here because of some 328 2/21/07 RULES - Bills 070006, 08 through recent comments that I've read from none of the people in front of me but some members of Council who have sort of given up, and the Solicitor's testimony wasn't very encouraging, either. And my testimony today focuses on what I think Philadelphia and this Council should be doing is to be standing up for everybody in Philadelphia. And I say this because it's almost as if members of Council, the Solicitor, and some other people have treated the State as this all-powerful Leviathan that can do whatever it wants in this nebulous concept of Harrisburg and how all-powerful it is, and nobody wants to touch this third rail of casinos, because Harrisburg is going to do what it's wants.
Madam President, I'm sorry. I think we've been on the third rail of casinos for the past number of hours. I don't -- 329 2/21/07 RULES - Bills 070006, 08 through 2
I mean, 4 you're saying we're -- we don't want to 5 touch the third rail of casinos, the 6 Council here? What have we been doing? 7 We're listening to -- 8
We're 10 listening to people. We have ten pieces 11 of -- 12
-- some time to 330 2/21/07 RULES - Bills 070006, 08 through talk, please?
I'm not here -- 8 I'm here to -- 9 (Indiscernible; parties talking 10 over each other.) 11
Listen to me, sir, listen to me. That's all I ask you. That's all I ask you to do.
Okay. And before I said it, I said nobody in front 331 2/21/07 RULES - Bills 070006, 08 through of me has done that, okay? If you don't like it go back to your cell phone.
But what I see 7 is a change happening here in 8 Philadelphia. I think we do -- we are 9 gaining an upper hand here in terms of 10 how we deal with the State, okay? Maybe 11 because of some of the efforts of what 12 you've been doing. 13 So if you would have listened to me, maybe you would have heard it, okay? Try to jump down my throat before I said anything, okay? I'm here as a resident. You're here 'cause I pay you to be here.
Whoa. Now, listen. Let's have respect for each other, please.
Well, if I didn't respect you, I apologize. 332 2/21/07 RULES - Bills 070006, 08 through 2
But I just 4 want the truth here and not some twisted 5 version of it. 6
On many levels, what was once used as an unchecked reality to us on the waterfront has become something that many don't view as a forgone conclusion anymore. Where people once thought we had no power, the conduct of the PGCB and its false reasons for choosing these sites have proven to be an indictment on the process and a reason for all of us to question whether this development is really meant to benefit taxpayers or a select few. 333 2/21/07 RULES - Bills 070006, 08 through I say this as someone who supports gaming in this city, and I do. I believe there are many people on Council who do. I say this as someone who's spent a better part of my life in the last year learning about the intricacies and the issues and the problem that face my community. And I've done it, every minute of it, because I believe and I care about my neighborhood. I'm a fifth-generation Fishtowner, and I've done it because I care, okay? I didn't do it because I wanted to twist any truth or accuse anybody of not doing anything. But I did it because I care about my neighborhood. And I say that it's possible to be in favor of gaming and support the bills that are before you today, it's possible to do so. It's possible because people have gone out there and got signatures for a referendum, 27,000 people in a 334 2/21/07 RULES - Bills 070006, 08 through 2 couple weeks. It's the largest act of 3 citizen-initiated democracy in my adult 4 life -- and maybe in my life -- and 5 that's to be applauded. 6 People are looking to you to 7 stand up here to Harrisburg. We're 8 looking for you to do this. We're 9 looking for your votes on behalf of us 10 to take back what we see as the ability 11 for us to control our own destinies. 12 And if we pass the zoning provisions 13 that Councilman DiCicco has introduced, we will do that. Because I believe, and I think many people also believe, that the PGCB and its adjudication and the laws that this is all resting on are on thin ice. No politically savvy person would agree that if this bill was introduced today, in light of the pay-raise shenanigans, that this would have passed, no one. So it's time to turn back the clock. We've seen press releases from 335 2/21/07 RULES - Bills 070006, 08 through 2 the Governor's Office and everyone else 3 and the PGBC touting property tax reform 4 and how people in Adams County and 5 Potter County and Beaver County are 6 going to get $120 off a year at the 7 expense of some of my neighbors. 8 And I've been out there as a 9 proponent 'cause I believe maybe gaming 10 will work in this city, but it's not 11 being done properly. 12 Representative O'Brien, 13 Councilman DiCicco, to some extent yourself, Councilman Kenney, my councilman, Councilman Clarke, have been out there speaking about trying to get a hold on this process and to get this train that's been barreling out of control since last year back on the right track. I think it's possible that, you know, people who are for gaming think that those of us who are now talking about it in a different light say we're drinking the Koolaid. Well, I don't 336 2/21/07 RULES - Bills 070006, 08 through 2 drink Koolaid, and I know that you guys 3 aren't drinking Koolaid, because I think 4 we've taken a shot of courage here. 5 And I think everybody on 6 Council needs to take a shot of that 7 courage, maybe ten shots, and vote these 8 bills out of committee. And when they 9 get in front of the whole body, vote 10 them so that they're veto-proof and that 11 they go up there. 12 And unlike the Solicitor, who, 13 I'm sure, is a legal scholar and an eminent legal mind, but when I hire an attorney, I don't want him to tell me I'm going to lose before I even start. And if we pass these bills, let the Supreme Court tell us that we're wrong but give the people of Philadelphia a voice here. I liken this situation that we're faced with right now with somebody coming into your house as a guest.
You know, we invited this guest in -- the State, the casino companies -- come on 337 2/21/07 RULES - Bills 070006, 08 through in to our house, you know, I'll give you a room upstairs. You know, we let the person rearrange the room a little bit. We damn sure don't let an interior decorator come in, start knocking down walls, and knocking everything down and telling us what we're going to have in our own home, 'cause we need to treat our riverfront and our neighborhoods like they're our home. And they are our home. And if you asked -- if you take the Solicitor's comments today, he's saying to us, Why should we even speak up? Well, because if we don't do this now, I believe that this gaming development may not work the way we want it to in the best way for our neighborhoods. So I think it's time for everybody to -- to -- you know, when you guys -- everybody's up for election. When you guys are talking about running, 338 2/21/07 RULES - Bills 070006, 08 through 2 everybody says, "I fight for our 3 neighborhoods," let's fight for it. 4 Well, it's time to fight this 5 Harrisburg nebulas, this monster that 6 everybody talks about -- Harrisburg, 7 Harrisburg, Harrisburg, Harrisburg. 8 Well, I think -- and, you know, 9 nobody would ever accuse anybody from 10 Fishtown of not being able to fight or 11 at least know what a fight was, but I 12 think it's time that Council fight for 13 us and for everybody who wants to have this gaming development work, if it's going to come. But fight for us, pass these bills, and live up to what I think you guys want to do, and fight for our neighborhoods. Thank you.
My name's Matt Pappajohn. I am a resident of Fishtown. 339 2/21/07 RULES - Bills 070006, 08 through I've lived in Philadelphia all of my life, and I thank you for having me here today. Madam President and members of Council, I'm a member of NABR -- that's Neighbors Allied for Best Riverfront, and I am its delegate to the Delaware River Neighborhood Alliance, which comprises civic groups which span the 11 Delaware from the Betsy Ross Bridge to 12 the Walt Whitman Bridge. The DRNA was 13 formed to enable our collective communities to better deal with the booming menace of gambling in Philadelphia. I also belong to the Fishtown Neighbors Association, and I hope that's the body that you will look to for guidance on casinos vis-a-vis Fishtown. I respect Rich Levins and what he had to say, but he does not speak for our community. The Fishtown Neighbors Association is the recognized civic group there. And, again, please look to 340 2/21/07 RULES - Bills 070006, 08 through 2 us for guidance. 3 To protect my family, my home, 4 and my community, I've been forced to 5 live and breathe casinos for the last 6 year, and I resent that. 7 The legislature could have 8 easily drafted Act 71 to benefit and 9 protect anyone they preferred. They 10 clearly preferred the politically 11 connected rather than write provisions 12 into the law that would empower and 13 protect neighborhoods where these out-sized slots boxes would be dropped. Pennsylvania legislators instead chose to include provisions which would benefit their cronies, casino operators, Pennsylvania horsemen, and even themselves. When it came time for the Pennsylvania Gaming Control Board to draft its regulations, it could have done so on behalf of anyone it chose. In spite of its primary mandate of protecting above all else the residents 341 2/21/07 RULES - Bills 070006, 08 through 2 of the Commonwealth, the PGCB chose, 3 however, to favor and protect casino 4 operators and the politically connected 5 with its regulations. 6 Neither the legislature nor the 7 PGCB ever saw fit during the two-year 8 process to put forth a single community 9 preservation initiative or to offer any 10 assistance or guidance to communities 11 faced with these looming menaces. 12 Even as the Pennsylvania Gaming 13 Control Board and the legislature were busy doing nothing for the residents and communities of Philadelphia that might host these slots parlors, they were vigorously trying to take something from us. In spite of the Pennsylvania Supreme Court's tossing out the provision in Act 71, which would allow the State to preempt local zoning, legislature was making a grab for it again. Senate Bill 862, one of the 342 2/21/07 RULES - Bills 070006, 08 through 2 most contemptuous bills ever to come 3 down our river, among other things, 4 sought to assert Philadelphia right of 5 home rule and placed zoning control over 6 casino sites back in the hands of the 7 PGCB, an unelected body of political 8 appointees who have thus far not 9 demonstrated anything but contempt for 10 the City. 11 This particular aggression by 12 the State is unprecedented. When has it 13 ever tried to take so much from us while giving us so little? As you know, though, many people in the room, elected or not, fought tooth-and-nail, kicking and screaming to make sure that SB862 did not pass. With the help of our State Representatives O'Brien, Taylor, Lederer, and Keller and this Councilmatic body, we won. This victory cannot be squandered. We must maximize and use 343 2/21/07 RULES - Bills 070006, 08 through 2 the zoning power for which we fought so 3 hard. 4 Councilman DiCicco's 5 resolutions strengthen our zoning 6 position vis-a-vis casinos. These 7 developments have the potential for 8 grave and irrevocable consequences for 9 our citizens and neighborhoods. 10 I can't imagine a Philadelphia 11 in which communities and Councilmembers 12 have no controls over what happens in 13 their districts.
Please do not let the casinos be an exception to our deciding how, where, and even if development happens in this city. Many of us have repeatedly been told that casinos are a done deal here. I say they're not. They're far from a done deal. And, in fact, they're a bad deal. And your helping to pass Councilman DiCicco's resolutions will give us all a new deal. Please give him your support. And thank you. ) 3
Our 4 next speaker? 5 MR. McNULTY: Hi. I'm Joe 6 McNulty. I'm with New Kensington CDC, 7 and I'm here to speak directly to two of 8 the proposals that would amend the 9 Commercial Entertainment District in 10 order to minimize negative impacts from 11 any gaming facility near a residential 12 neighborhood. And these are namely 13 070008 and 070010. The first one, 08. This amendment would ensure that the City retain zoning control of any Commercial Entertainment District by eliminating any provisions that would undermine local zoning control. Philadelphia has already been forced to accept two licensed gaming facilities and was in danger of losing local zoning control under the auspices of State Bill 62. That the City narrowly escaped 345 2/21/07 RULES - Bills 070006, 08 through losing this local zoning control is a testament to how delicate the situation is. If we as a city are forced to accept licensed gaming facilities for the economic good of the entire state, then we ought to, at the very least, have a say in how these facilities integrate themselves into our city. Moreover, the neighborhoods immediately adjacent to these gaming sites should have the most input on how the sites look, interact with local traffic, and affect the overall quality of life for those living closest to the casinos. There is a common perception that the citizens of Philadelphia, and particularly the residents of the adjacent neighborhoods, have had very little say on the placement and development of the casinos. Zoning control is the last line of defense the City has for determining how these sites will integrate into surrounding 346 2/21/07 RULES - Bills 070006, 08 through 2 neighborhoods. And public zoning 3 hearings would allow for citizen input 4 on design and other impacts of casinos. 5 Furthermore, City Council could 6 even amend the zoning ordinance in such 7 a way as to prohibit casinos altogether 8 as a permitted use in the Commercial 9 Entertainment District if it is 10 ultimately proven that casinos are not 11 in the best interests of the City. 12 It should be an obvious 13 decision for this committee. Home Rule dictates that Philadelphians have the ultimate say on what goes on in our city. While recognizing that gaming legislation presents an economic benefit to the entire state in the form of property-tax relief and to the City of Philadelphia in the form of wage-tax relief, new jobs, tax revenue and potential of increased tourism, the bulk of the burden of hosting a gaming facility should not be borne by a few 347 2/21/07 RULES - Bills 070006, 08 through 2 neighborhoods without their even having 3 a voice in shaping the development of 4 that facility. 5 Onto the next one, number 10. 6 This amendment to the Commercial 7 Entertainment District is crucial in 8 that it seeks to directly offset the 9 compound and negative impacts that will 10 befall any neighborhood forced to accept 11 two casinos and further addresses the 12 negative impacts of siting even a single 13 casino close to a residential area. As the Council knows well, the northern neighborhoods of Fishtown, Kensington, and Port Richmond along the Delaware River are adjacent to three of the five proposed sites for casinos, including one of the approved facilities, the SugarHouse Casino. There is a remote possibility, assuming that good cause is shown, that the license for one of the approved gaming facilities could become portable. It is also feasible that another casino 348 2/21/07 RULES - Bills 070006, 08 through 2 could be approved in the future. 3 Under such a scenario, the two 4 non-approved sites and possibly other 5 sites in this area could come under 6 consideration to accept a gaming 7 facility. In this case, the proposed 8 amendment to the Commercial 9 Entertainment District would prohibit 10 the gaming facilities from being sited 11 within one mile of each other.
12 As the I-95 Girard Avenue 13 interchange is about to be realigned in a process that PennDOT estimates to take no less than three years, including a newly planned temporary ramp to alleviate casino traffic and other redirected traffic, it would be unwise to allow two gaming facilities to be sited in as close a proximity as the three original northern-site proposals would demand. The expected influx of traffic from even one gaming facility has already rung alarm bells in the northern 349 2/21/07 RULES - Bills 070006, 08 through neighborhoods, as the SugarHouse facility would likely bring a number of cars through neighborhood streets. The expected increase in traffic through these local streets would present a safety hazard to neighborhoods where children often play in the streets. It would also tax an infrastructure that is not designed to handle such increased traffic loads. The obvious extension of this argument is that two sites would affect the safety and infrastructure of local neighborhoods to an even greater extent and would likely cause traffic failure at many of the already-inefficient intersections on Delaware Avenue, as thousands of visitors are expected daily. Furthermore, the proposed temporary ramp during the reconstruction of the Girard Avenue interchange would be the main road for visitors using I-95 and would not likely be able to handle 350 2/21/07 RULES - Bills 070006, 08 through 2 the traffic loads brought in by two 3 casinos in the northern neighborhoods. 4 The siting of two casinos 5 within a mile of each other, without a 6 significant increase of resources, would 7 also present an acute drain on social 8 services, police enforcement, and 9 infrastructure elements such as sewers. 10 Just one Commercial 11 Entertainment District within a short 12 distance of a neighborhood will likely 13 tax such resources to an extent and will require effective planning to accommodate a casino. Once again, siting two casinos within a mile of each other would compound this effect and place the bulk of the burden on a limited geographic area. As for the other provisions of this ordinance, City Council should consider the prohibition or limitation of electrical signs that could cause a greater nuisance to adjacent 351 2/21/07 RULES - Bills 070006, 08 through 2 neighborhoods. Signs that are lit or a 3 mid light will likely have a spillover 4 effect into the nearby residential areas 5 if they are permitted to be situated 6 next to the road. 7 The committee should, 8 therefore, address both orientation and 9 design of any proposed signs to ensure 10 that adjacent neighborhood are given due 11 consideration, and any spillover effects 12 from light and noise or other forms of 13 nuisance are minimized. Next, the waterfront setback should be set at the level that will afford the greatest public realm, waterfront access, environmental protection and flood control, and allow for the alignment of a continuous trail along the riverfront, connecting residents to other current and proposed forms of riverfront development. For these reasons, New Kensington CDC urges City Council to adopt both of these resolutions in order 352 2/21/07 RULES - Bills 070006, 08 through 2 to minimize negative impacts on 3 neighborhoods nearest the casinos and to 4 afford a greater quality of life for 5 residents of these neighborhoods and, 6 indeed, all Philadelphians. ) 8
Thank 9 you very much. 10 Please identify yourself for 11 the record. 12
My name is Matt 13 Ruben, M-A-T-T, R-U-B-E-N. Thank you, Madam President and members of Council, for the opportunity to testify today. I am a resident of Northern Liberties Neighborhood of Philadelphia. I am former president and a current board member of the Northern Liberties Neighbors Association, or NLNA, which represents one of the two communities in whose boundaries the proposed SugarHouse Casino would be located. The NLNA is also a member of 353 2/21/07 RULES - Bills 070006, 08 through the North Delaware Avenue Unity Coalition and the Delaware River Neighborhood Alliance, which collectively include more than civic 6 groups representing approximately 7 200,000 Philadelphians. 8 Personally, I have no moral 9 objection to gambling. I am also 10 opposed to casinos in Philadelphia. But 11 I'm not here to talk about my personal 12 view; I'm here to talk about the view of 13 the Northern Liberties Neighbors Association and the community it represents, which I speak for today. Northern Liberties is a community that is growing faster than perhaps any community in Philadelphia and perhaps any in the Commonwealth. From the last census to the next census, our population will double, if not triple. That is, as far as I know, fairly unprecedented in recent history in Philadelphia. We are not an anti-development 354 2/21/07 RULES - Bills 070006, 08 through 2 community. We are experiencing 3 tremendous growth, with approximately 4 3,000 new residential units under 5 construction or planned for the Delaware 6 Avenue corridor alone, with hundreds 7 more in the interior of the 8 neighborhood. 9 We have worked with developers 10 and successfully inked development deals 11 for projects with budgets as large as 12 $800 million, which is approximately 13 double the budget of most of the casino applicants. So we are very much pro-development. We want to see more people come into the city, and we are in favor of responsible development that will positively impact the city. And we are capable of taking a larger view. The NLNA is also the only river civic association that I'm aware of that has both officially opposed casinos and has tried, as part of the North Delaware Coalition, to negotiate with them. 355 2/21/07 RULES - Bills 070006, 08 through 2 And from that unique 3 perspective, I am here to tell that you 4 we are not in a place where it is 5 possible to properly protect our 6 interests and our quality of life at 7 this time, and that is why the bills 8 before you are so important. 9 Let me repeat that. Regardless 10 of whether you think casinos should be 11 stopped entirely or they should come 12 here with community protections, it is 13 my feeling, and I'm here to tell you, we are not in a position as communities to sufficiently protect our neighborhoods and our quality of life should the casinos be built. (Applause.)
We all know the conditions under which Act 71 was passed at the State level, and some of you up there have spoken eloquently about the extent to which the State legislature expressed its utter contempt for the people of Philadelphia and of 356 2/21/07 RULES - Bills 070006, 08 through Pennsylvania from the beginning, when this last was passed, right through to frankly what has often been puzzling and, in some cases, appalling behavior by the Pennsylvania Gaming Control Board. We have also talked a lot today about the questions of jobs. Will casino jobs, which the only applicant that we heard specific figures from was Pinnacle, and they said their jobs would average $19,000 a year. Would casino service jobs take away family wage jobs in the ports and elsewhere? Will they compete -- and if so, how much -- with locally owned restaurants, taverns in neighborhood commercial corridors. How much will crime increase in the vicinity, and will we have the resources to police it properly? Can a city as large as Philadelphia, with residential areas as dense as Philadelphia's, cope with 5,000 357 2/21/07 RULES - Bills 070006, 08 through 2 slot machine facilities covering 3 multiple acres right on their doorsteps? 4 We don't know the answers to 5 these questions, although a lot of us 6 certainly have our good guesses. 7 And the reason that we are in 8 this situation, the reason that we have 9 this dilemma and don't have the all of 10 the facts and are in no way prepared to 11 understand in an educated way what could 12 really happen, is because this situation 13 that we find ourselves in is the fruit of a poison tree, which is the process by which casinos have been conceived, legalized, and licensed in the State of Pennsylvania and, therefore, in the City of Philadelphia. No one has ever given us the ability to answer the basic questions, the most basic questions, that anyone in a democracy should be able to answer: Do you want slot machine casinos in your city? If so, where do you want them, and how do you want them implemented? 358 2/21/07 RULES - Bills 070006, 08 through 2 There are many ways to do this, 3 and we have fundamentally been denied 4 the right to have even the most basic 5 input into these most important 6 questions. 7 Some of the measures that 8 Councilman DiCicco has put before the 9 committee today would give the City 10 greater regulatory control over the 11 development of the two proposed casinos. 12 Such measures are certainly useful. The 13 City should have as much regulatory control as possible. But other measures before you would perform a much more valuable function. They would stop this process as it is in its tracks and confront the Commonwealth on the very heart of this process, the very roots of the clear and present danger Philadelphia's river communities, ports, traffic system, and social fabric now face because of the way this process has been conducted at the State level. 359 2/21/07 RULES - Bills 070006, 08 through 2 It is very important to 3 understand that casinos are not private 4 development. As has been made very 5 clear from the Governor's Office on 6 down, they are public policy. They were 7 legalized in order to raise revenues. 8 And, therefore, as public policy, the 9 public -- us -- and our elected 10 representatives at the City level should 11 demand proper input as we would into any 12 public policy that affects our daily 13 lives. (Applause.)
We're telling you today we want a meaningful say on whether casinos constitute a part of our future; and if so, how? We're urging you in the strongest possible terms to stand up for your constituents and say, We draw the line here. Not one more step, not one more inch until we have a process that respects the rights and prerogatives of citizens who live in a democracy. 360 2/21/07 RULES - Bills 070006, 08 through The tree is rotten. Cut it dow. (Applause.)
Pass these bills, 6 and we can stand together for what is 7 right for our communities, our families, 8 and our great city. 9 Thank you. And I'm happy to 10 entertain any questions on any community 11 process or issue. 12 Thank you. 13
Just a moment, please. The Chair recognizes Councilman Kenney.
Thank you very much, and thank you all for your testimony. I appreciate it. I do agree with your analysis of the rotten tree; I think it's quite well formed and very illustrative. 361 2/21/07 RULES - Bills 070006, 08 through The tree, as we've said earlier, was planted in Harrisburg and is growing rotten fruit that we're having to deal with. What's -- we've heard your suggestions on what we should be doing here. What do you think are suggestions of what the legislature should be doing to try to help assist us in working together to either stop or reform the process?
Councilman, I just want to say that anything I say from here on end is my own personal view --
There's legislature that has been introduced in the State legislature that would strike all mention of Category 2 facilities in Act 71, and, I presume, would 362 2/21/07 RULES - Bills 070006, 08 through 13 potentially increase Category and Category licenses. I think that would be a concrete improvement on the quality of life of people in Philadelphia. While I certainly would prefer not to have casino development in Pennsylvania, I think putting 500 slots in areas that are already resort areas and putting slot machines in places that already have race tracks is certainly something that I would prefer than having stand-alone new slot facilities in the locations that are proposed for us or anywhere in our city. So I think that's one step. Of course, I would love to see the repeal of Act 71 and the whole thing start over. I think that if the question were put, as it was in Ohio on November 7th, there was a statewide referendum: Do you want slot casinos? No. It so happens it lost 57 to 43. But even if it didn't lose 363 2/21/07 RULES - Bills 070006, 08 through 2 here, people would at least have a voice 3 and there would be a public conversation about how to implement them. So I think those are just two examples of what could be done at the state level. And I'm sure there's a lot more. I mean, per se, I'd like to say the Pennsylvania Gaming Control Board eliminated. I think that its formation constitutes an improper delegation of legislative authority by the State. And as I said in my testimony, I don't want to sound overly rhetorical, but it has been my experience as a citizen of this commonwealth and this city that the Pennsylvania Gaming Control Board has acted in an utterly unprofessional incompetent, and imperious manner towards the citizen of Philadelphia since its inception. (Applause.)
I'd like to add that I think that the way that the 364 2/21/07 RULES - Bills 070006, 08 through Gaming -- the State went about --
7 (Addressing Councilman Kenney.) Are you 8 finished with your line of questioning 9 of the witness? 10
No, I'll 11 entertain -- I think he's piggybacking 12 on Ruben's answer. 13
I think anybody who looks at this process would agree that this was done backwards. The Gaming Board chose places and sites without investigating any of the sites. If you are going to put something somewhere, wouldn't you investigate the best site for this, taking everything into account, and then take requests for proposals for that site? 365 2/21/07 RULES - Bills 070006, 08 through Here, the Gaming Board picked people and sites without even taking the sites into account. They don't even have a traffic study for all of Delaware Avenue. How insane is that. It's impossible to think that if you were putting responsible development out there, you wouldn't have a traffic study done for one of the main arteries out of and into Philadelphia and then you would put a place where 10 million people are going to go to a year? How crazy is that.
There was discussion earlier and testimony from SugarHouse Casino that the issue of riparian rights was critical to their development as it relates to the ability to provide potential amenities like access to the waterfront, pedestrian walkways, green space and the like. In the event that either the State preempts -- we do something here and the State preempts us again, or the 366 2/21/07 RULES - Bills 070006, 08 through casino people sue and the court overturns us, what is your opinion on the status of riparian rights as it relates to the specific project in your neighborhood, the SugarHouse?
Well, I'm not sure 8 I fully -- well, I'm not -- I understand 9 the question. I'm not sure I understand 10 the specifics, but let me say this about 11 riparian rights. 12 And, again, I'm only speaking 13 for myself. If SugarHouse comes and is built, if they don't get riparian rights or if there is some arrangements for them to get riparian rights, personally, I would prefer a fully publicly-owned and controlled riverfront access in that area to one that a private developer leases and then, by its good graces, let's the public walk on. So, for example, I would certainly want a better project rather than a worse one, but there is no reason 367 2/21/07 RULES - Bills 070006, 08 through that a casino operators has to have all of the riparian rights that it's asking for. I'd like to see a multi-acre public park in that area, and if a casino comes there, then there should be a wide path right through the grounds of the casino is on as a part of their arrangement so that the public gets to go its own public area and not something that's a part of a promenade that can be closed, as we've heard proposed, for weddings and other events and that is actually an accessory to a private food court and restaurant area but something that actually belongs to the public, because my understanding is, it's the public's land and it's the public right. So I think that even if casinos do come, I personally would not support them getting the riparian rights; or if they got them, I would not support them getting all of that land because some of it at least should belong totally to the 368 2/21/07 RULES - Bills 070006, 08 through 2 public and should be under the exclusive 3 control of the public because it's our 4 land and it's our rights. 5
If riparian 6 rights were an issue of the SugarHouse 7 development and it comes to fruition, 8 will you have concerns about the massing 9 of the building or the setback of the 10 building or the parking issues relative 11 to the site if it's affected by the 12 riparian rights and their ability or 13 inability to obtain them?
We have concerns about that now, but I think A.J. wants to speak on that.
I could say I think I'm probably the only one on the panel who remembers sneaking down past the waterfront restaurant when it was down there and being on the riverfront. And I think my daughter who's two, I'd like to have her to be the first generation of Fishtowners in a long time that didn't have to sneed through 369 2/21/07 RULES - Bills 070006, 08 through weed-choked lot to get to the river. And if this happens, I think the City Council and State Representative O'Brien and everybody else should do their best to make this as public a place to go as possible, because if you look at the riverfront now, you have Penn Treaty Park, which is, you know, on the rebound, but it's pretty small compared to the amount of waterfront space that we have. And if we don't guarantee some access to the river, we're going to have het another generation of people in Philadelphia, and especially in my neighborhood, whose only connection to the neighborhood is a little bit of Penn Treaty Park, and they deserve better, I think.
So based on both your -- the way you approach the issues, you're not out of hand dismissing the acquisition or use of riparian rights for development? 370 2/21/07 RULES - Bills 070006, 08 through 2
I would like to see 5 another type of development besides 6 casinos in that area, and should that 7 type of development come, I would expect 8 that our city and state officials will 9 work with us and together with each 10 other to ensure that other better kind 11 of development would substantive public 12 access and use on the river. 13 (Applause.)
For example, if the RiverWalk site is publicly owned landed that the Penn's Landing Corporation land-banked for many, many years, and now it's eleven acres, nine of it on land that could be used for a public use, and I hope that the Penn's Landing Corporation will change its policy of land-banking and allow true public use. And I'd love to see the same 371 2/21/07 RULES - Bills 070006, 08 through kind of approach taken in a cohesively planned manner on the SugarHouse site and the Foxwoods site so that you could have mixed use combined with public use, jobs and construction, commercial activity, maybe some residential, and something for people to actually enjoy when they got to the river instead of gigantic block-busting 5,000-slot machine, 4,000-parking garage structures right on our river. (Applause.)
What I'm trying to assess is not your position or the -- not your organization's position, is that if it affects -- if the alternative uses of the riparian rights affects the massing and the look of the building, that's something you'll have to wait and see what happens and have an opinion about that then, or do you have an opinion about that now?
My organization would have to see alternative renderings 372 2/21/07 RULES - Bills 070006, 08 through in such a situation.
Thank 9 you very much. 10 Thank you, gentlemen. 11 PANEL: Thanks. 12 MR. McPHERSON: The next panel 13 consists of: Ahmeenah Young, Pennsylvania Convention Center Authority; Wanda Paul and jack Ferguson from the PA Convention and Visitors Bureau; Deborah Diamond, Greater Philadelphia Tourism Marketing Corporation; Valerie Ferguson, Bill 20 Walsh, Ed Grose, Philadelphia Hotel Association. (Witnesses come forward.)
Good afternoon. 373 2/21/07 RULES - Bills 070006, 08 through 2
Thank you for your patience. Please identify yourself for the record.
Good afternoon. I 6 appreciate the opportunity to speak to 7 Councilmembers today. My name is Bill 8 Walsh, and I am the general manager of 9 the Philadelphia Marriott Hotel. 10 And I'm not here to speak to 11 you today as an individual but rather as 12 an officer in the Greater Philadelphia 13 Hotel Association that represents 85 hotels in our region. I'm here today to urge you not to support the ordinances that have been introduced that will either delay or prevent casino development. Over the past several years, the Philadelphia Gaming Advisory Board has worked with a great vision to compile a comprehensive report that covers every facet of the gaming initiative in our city. This includes everything from site expansion to casino design. It 374 2/21/07 RULES - Bills 070006, 08 through takes into account the social and economic impact that gaming would have on our community. The revenues that would be generated by gaming in Philadelphia have been well documented. According to the task force, two proposed casinos would generate approximately $685,000 in revenue during their first full year of operation alone. This would be able to reduce the City's wage tax by 13 percent for our residents and 8 percent for our nonresidents. Additionally, the City would receive between and $30 million 18 annually in host fees, with more than 19 7 million in dollars of that going back 20 into our Philadelphia school system. 21 In addition to the tax savings 22 for residents, two casinos will create 23 over 1500 real casino jobs and between 24 2 and 3,000 new jobs in ancillary 25 operations from casinos from the growth 375 2/21/07 RULES - Bills 070006, 08 through 13 and other industries that service patrons and businesses that support casinos. The over 1,000 new construction jobs that will be created during the building of these facilities will pay between 30 and $34 million in wages. The indirect construction-related jobs will provide employment to almost 1500 individuals and pay roughly $73 million. At this moment, I'd like to deviate from my prepared remarks. Earlier as I sat here, I heard some testimony that said that the creation of jobs and development from casinos was not a reality. Being somewhat of a curious individual, I took the opportunity to excuse myself from the room, and I have hotels that are located in both the areas up in Connecticut near the Foxwoods site and up near Niagara Falls, where the SugarHouse site is. Both of those hotels report 376 2/21/07 RULES - Bills 070006, 08 through 2 that their occupancies are at an 3 all-time high and that both environments 4 are proposing and considering 5 development of future hotels. That, to 6 me, lends credence to the theory that 7 there is further growth and development 8 that can come from the advent of 9 casinos. 10 However, what I want to talk 11 about, I think, that has the most 12 potential today is that with the revenue 13 generated through gaming, there is one critical factor to consider when deciding upon the proposed legislation, and that is the impact it would have on one of the city's largest economic engines, that being the convention business. The expansion of the Philadelphia Convention Center is absolutely necessary in order to maintain economic growth, development of new business, creation of new jobs, and providing to the City a vitality it 377 2/21/07 RULES - Bills 070006, 08 through 2 needs to remain a top destination in the 3 United States. 3 billion. And that's just on the 11 mere promise of an expanded center. 12 These are real numbers. 13 Unfortunately, we have also turned away approximately the same amount of money because our current center has already been booked, or the meeting that wants to come here is not able to come to our convention center 'cause it's not large enough to hold it. Once expanded, it will be projected that more than 2,000 hotel rooms would be needed resulting in more than 1500 newly-created real jobs.
The expansion of the center will occur only if gaming can come to 378 2/21/07 RULES - Bills 070006, 08 through Philadelphia. Gaming is the primary funding mechanism, and without it, this project will not happen. The revenues created through gaming in Philadelphia are the catalyst that would spark further growth in development just -- not just in a few select areas of the city, but for the entire city. I believe that any proposal that delays or prevents gaming would not be prudent and would have a negative effect for our city for a long time. In closing, I would like to recall everybody's attention to the October 15th article in National Geographic that named Philadelphia one of America's next great cities. I ask you not to support these proposals, and I believe that that would impede the vision by not allowing us all to grow to reach our fullest potential. Thank you. ) 379 2/21/07 RULES - Bills 070006, 08 through 2
Thank you very much. Good afternoon. Welcome. Thank you for your patience. Identify yourself for the record.
Good afternoon. My 8 name is Wanda Paul. I'm senior vice 9 president for the Philadelphia 10 Convention and Visitors Bureau. 11 The Philadelphia Convention and 12 Visitors Bureau is a membership 13 organization, and 85 hotels are a vital part of that membership. When the idea of gaming was initially brought forth and discussed, we serve a concierge, bell service, front-desk personnel to of those 19 membership hotels. What we found was 20 that guests' requests for arrangements 21 were made to Atlantic City ranged from 22 percent to 40 percent -- as high as 40 23 percent of all questions regarding 24 information for nighttime activities 25 each year. 380 1 2/21/07 RULES - Bills 070006, 08 through 13 This means there are huge dollars, and those are real dollars going out of state for gaming, plus other expenditures such as shopping and dining. And in some cases, it actually may mean someone checking out of the hotel in Philadelphia to go to Atlantic City or Delaware. We want revenue to stay in Philadelphia, meaning more jobs for the citizens of Philadelphia. And speaking of jobs, the Philadelphia Convention and Visitors Bureau and our Multicultural Fair Congress have already met with one of the casinos in regard to the importance of diversity and the creation and operation of these new destinations. Many convention attendees and their spouses as well as tourists already leave Philadelphia for the night, traveling to neighboring Atlantic City or Delaware play, where they the slots, dine in restaurants, see a show, 381 2/21/07 RULES - Bills 070006, 08 through or shop on the Boardwalk. Why not have them spend that time and discretionary dollars in Philadelphia. And we haven't even mentioned the impact the slots could have on attracting new tourists to Philadelphia, including motor-coach tour operators and our fast-growing international visitors, now at an all-time high. We support the value-added attraction of the casinos as an additional entertainment option for the City of Philadelphia. Thank you. (Applause.)
Good afternoon. Please identify yourself for the record.
Thank you. Good afternoon, Madam President and City Councilmembers. I'm Jack Ferguson, the executive vice president of the Philadelphia Convention and Visitors 382 2/21/07 RULES - Bills 070006, 08 through Bureau. The Philadelphia Convention and Visitors Bureau is the official tours and promotional agency for the City of Philadelphia and the primary sales and marketing organization for the Philadelphia Convention Center. We generate economic impact and growth by increasing the City's hotel occupancies and revenues while affecting all segments of the hospitality industry. Philadelphia hospitality's package is unique and with the Pennsylvania Convention Center as its hub. In most cities, convention business makes up about 27 percent of all hotel rooms consumed each year. But in Philadelphia, the convention and meeting business accounts for 40 percent of all of the rooms that are consumed. And Philadelphia has a solid market mix of leisure and business travel as well. One of the greatest 383 2/21/07 RULES - Bills 070006, 08 through 2 attributes that Philadelphia offers is 3 the variety of free-time choices for 4 convention and tourism visitors when 5 they come to our city. The selections 6 we have currently are top-notch, but 7 they can always be enhanced as well as 8 improved. 9 Philadelphia is rich in the 10 history with new attractions that 11 Independence Park offers. Philadelphia 12 is second to none as a destination for 13 the birthplace of the nation. Culturally, Philadelphia offers a wide variety of choices. Philadelphia's theater district can be experienced on the Avenue of the Arts, providing an array of entertainment. Philadelphia is in the big leagues when it comes to sports as well. You can just ask any Philadelphia sports fan. Night life abounds in Old City, South Street, Penn's Landing, Rittenhouse Row, and in the hip area of 384 2/21/07 RULES - Bills 070006, 08 through 2 Manayunk. 3 As a convention and tourism 4 destination, Philadelphia provides our 5 guests with great choices. Providing 6 choices ensures Philadelphia's continued 7 growth in its ability to attract 8 meetings, conventions and visitors to 9 hotels, restaurants, and venues, and to 10 keep the city with a fresh, new, and 11 exciting position. 12 To remain competitive as a 13 first-tiered city and to have the ability to attract and rebook conventions, we have to have the visitors return again and again. Philadelphia must continue to provide more choices as we expand the Pennsylvania Convention Center. The two new casinos will expand our nightlife offerings as well as customers that are -- as well as our customers always look for, and the casinos will develop the waterfront to become a wonderful visitor destination. 385 2/21/07 RULES - Bills 070006, 08 through 2 When the casinos were first 3 being discussed, the PCVB and the Center 4 City District hosted a series of forums 5 to educate the hospitality and business 6 community and the local media on the 7 impact that the casinos have had in 8 other destinations and what they might 9 mean to Philadelphia. 10 Those findings were overall 11 positive, and it is why the Philadelphia 12 Convention and Visitors Bureau supports 13 Pennsylvania's desire to bring casinos to Philadelphia. Thank you.
I just have one question for this. The issue relative to funding of the Convention Center expansion, I kind of understand and get, and I don't mean to put you on the spot, but could you tell me the top-rated restaurants outside of the 386 2/21/07 RULES - Bills 070006, 08 through casinos in Atlantic City? Could you give me a name of a top-rated restaurant outside of a casino in Atlantic City?
But that's 8 like about it, right? Everything else 9 is inside of the casino, right? 10
I've been 13 there, and those two places are decent places and Chef (indiscernible), but it's not an overwhelming restaurant town outside the casino. What -- what -- if the goal of the casinos is to maximize the machines by keeping people in front of them, how does that enhance our nightlife in Old City or -- I don't understand -- I don't understand that comment, I really don't. (Applause.) (Cheers.)
Let me 387 2/21/07 RULES - Bills 070006, 08 through just -- if we're looking to maximize revenues for the City, for the State, for tax reduction, for Convention Center expansion, I can buy all that, I really can.
I can't see 9 or fathom how a restaurant or a bar 10 outside a casino benefits from 5,000 11 people sitting at -- from 10,000 people 12 sitting at 10,000 machines. I don't 13 know how that enhances it.
I think, to answer your question from the standpoint of the visitor, the visitor, he or she comes in and stays in the hotels, goes out for dinner, and the dining experiences all over the city are wonderful.
After they dine, what do they do? That's the question. And that's where Philadelphia falls short. 388 2/21/07 RULES - Bills 070006, 08 through 2
Wait a minute. If I'm going to -- and we could have this debate all day, and I know it's been a long day, but if I'm going to a destination point, all right, and I have a choice, and I'm coming from Ohio or Texas or New York State, and I'm going to come and stay in a hotel for a weekend or a week, am I going to the Bellagio, or am I going to Delaware and Reed? I mean, if I'm going to go to a hotel, I'm going to go to a hotel and stay there and gamble there. I'm not going to come to the Marriott and then get in a cab and go gamble at -- when 60 miles away are some of the nicest hotels -- not that we don't have nice hotels -- and some of the more expansive gaming opportunities like table games and other things that if I'm traveling -- if I'm going to get on JetBlue or AirTran and I'm going to fly into this region to gamble and to stay 389 2/21/07 RULES - Bills 070006, 08 through 2 overnight, I'm going to Atlantic City. 3
But there's -- I 4 think there's one other component to 5 consider, Councilman. 6 That may be true of individual 7 transient leisure travelers -- 8
-- but when you 10 talk about conventions, convention 11 people will spend multiple nights in the 12 hotel and want to experience various 13 nightlife activities. The casino environment might only be one of those evenings. It might be a night in another venue, so I don't believe they're going to go there every night; it's just another alternative to them.
I'm just having trouble understanding why a conventioner from Texas, and he or she wants to spend a gaming night, would not get in a shuttle and go to Atlantic City and gamble where they can gamble on 390 2/21/07 RULES - Bills 070006, 08 through other things. I've seen -- I've seen -- I don't go to casinos a lot, I don't really gamble, I don't -- it's not something that I like. But I see what gets off the bus at Atlantic City for the slot area. It is -- it is not your high roller. It's your basic senior citizens and, you know, working people. I don't see -- I don't get it, that whole -- this whole argument about that it attracts the nightlife. I think in some ways, like Councilman DiCicco said --
It enhances it. It's not a cure-all for the City of Philadelphia; it's just another entertainment option.
You know, there will be a night where they'll go out gambling, there'll be a night where they go to the Franklin Institute Museum. Conventioneers don't necessarily -- that's one of the attractions Philadelphia currently has. They don't necessarily want their conventioneers going to Atlantic City; they want them in Philadelphia. They have an option of spending a few hours in the casino after they dine, after their sessions are over. It's not like taking a hop to Atlantic City and coming back.
All I'm saying is it's pretty close. Atlantic City is pretty close.
But it does get into time as a currency. And what happens there is, the person has limited time, so he or she would explore 392 2/21/07 RULES - Bills 070006, 08 through Delaware Avenue or Columbus Boulevard as opposed to going 60 miles east.
Yes. Our 9 Convention Center expansion program, we 10 already have a certain number of 11 bookings for the expanded facility. 12 Have any of those bookings been based on 13 the notion that we may have gaming in the City of Philadelphia?
No, that has not been a determining factor as to why that convention could come.
So our Convention Center business is doing well. 393 2/21/07 RULES - Bills 070006, 08 through 2
Well 4 enough that we need to expand. We 5 already have bookings four years out, or 6 whatever the day is -- I can't remember 7 since I haven't been at a board meeting 8 in the last couple of months. 9 But the point I'm trying to 10 make is, it may be an amenity; I will 11 grant you that. 12
But it is not a deal-breaker for the Convention Center expansion, nor will we lose any customers as a result us not having gaming facilities. (Applause.)
But for the revenues that are anticipated coming from the casinos, we may not be able to build the expanded convention center.
That's correct. UNIDENTIFIED SPEAKER: That is 394 2/21/07 RULES - Bills 070006, 08 through the major critical issue with the gaming.
And I 5 understand that, I understand that 6 perfectly. But I just didn't want 7 anyone to be of the impression that this 8 is an amenity that without this amenity, 9 we will not do conventions in this town 10 going forward. 11
The danger, though, is without the expansion, there's millions of dollars of business that we enjoy as a city that will not return to the City 'cause we (inaudible).
Well, that's part of the debate that we can have all day is, what about the restaurants and the other entertainment venues that we currently have; will there be a negative impact on those businesses? 395 2/21/07 RULES - Bills 070006, 08 through Are we shifting the economy or the disposable income from one section 4 to another section of town to another section of town? And who benefits at the end of the day? Thank you.
Thank 9 you. 10 Yes. The Chair recognizes 11 Councilwoman Brown. 12
13 Yes. We've spent some dialogue on community expansion. Let's rewind back to the building of the first Convention Center, where there was volumes of unrest and thinking of what the City would or would not be were the center built. And so let's just rewind and place ourselves there. I clearly remember sentiments saying that the small businesses on that corridor would -- would die and that the world would not be better because of the building of the Convention Center. 396 2/21/07 RULES - Bills 070006, 08 through Let's fast-forward to where we are now. What would you say has been the yield of the building of the center?
Well, that's a 10 great -- I have a very good answer for 11 that. 12 Just take yourself back 13 years and tell me what Philadelphia 14 looked like at 5 o'clock at night with the old Civic Center in operation. The fact that the Convention Center was built in the very center of the city and that it has created a walkable city with hotels that are in easy access to that center has made the development of Philadelphia where National Geographic rates it as the next emerging city. It's a critical component, and it's really -- the Pennsylvania 397 2/21/07 RULES - Bills 070006, 08 through Convention Center is the economic engine that is driving the hospitality industry, regardless of whether it's meetings and conventions or tourism or even business travelers. Business travelers used to come into Philadelphia and not stay overnight. They would come in from New York and go back to New York that night. From Washington, they would come up and they would go back, or what they would do is, they would train it on to New York or train it to Washington, D.C., the opposite end and not stay in Philadelphia. The fact that 1,300,000 people pass through the doors of the existing Pennsylvania Convention Center on an annual basis has made this a better city not only for tourism but for the residents and the business community at-large. (Applause.)
398 2/21/07 RULES - Bills 070006, 08 through Are there any lessons learned from that circumstance? Because in this instance, the issue of keeping the community whole clearly has not manifested itself in a way that we can be proud of. So what lessons can we take from that when we look to see that we have a community that legitimately has some real concerns about what's before. Us? UNIDENTIFIED SPEAKER: The absolute beginnings --